Operating Profit Margin
since 2011
Calculation
LyondellBasell Industries N.V., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Sales and other operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 13.41% | = | 100 | × | 5,231) | ÷ | 39,004) |
| Dec 31, 2017 | 15.83% | = | 100 | × | 5,460) | ÷ | 34,484) |
| Dec 31, 2016 | 17.34% | = | 100 | × | 5,060) | ÷ | 29,183) |
| Dec 31, 2015 | 18.70% | = | 100 | × | 6,122) | ÷ | 32,735) |
| Dec 31, 2014 | 12.58% | = | 100 | × | 5,736) | ÷ | 45,608) |
| Dec 31, 2013 | 11.58% | = | 100 | × | 5,102) | ÷ | 44,062) |
| Dec 31, 2012 | 10.31% | = | 100 | × | 4,676) | ÷ | 45,352) |
| Dec 31, 2011 | 7.83% | = | 100 | × | 3,998) | ÷ | 51,035) |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 US$ in millions
- Operating Income
- The operating income exhibited a general upward trend from 2011 to 2015, increasing from 3,998 million US dollars to a peak of 6,122 million US dollars. However, after reaching this peak in 2015, the operating income declined in subsequent years, falling to 5,060 million in 2016, before slightly recovering to 5,460 million in 2017 and then decreasing again to 5,231 million in 2018.
- Sales and Other Operating Revenues
- Sales and other operating revenues showed a downward trend from 2011 through 2016, dropping significantly from 51,035 million US dollars in 2011 to 29,183 million US dollars in 2016. Despite this decline, the revenues experienced a modest recovery in 2017 and 2018, rising to 34,484 million and 39,004 million US dollars respectively, although they remained well below the initial 2011 levels.
- Operating Profit Margin
- The operating profit margin demonstrated consistent growth from 2011 to 2015, increasing from 7.83% to a high of 18.7%. This indicates improved operational efficiency or cost management during this period. Following the peak, the margin decreased steadily over the next three years, declining to 17.34% in 2016, 15.83% in 2017, and further to 13.41% in 2018, suggesting a reduction in profitability relative to sales.
- Overall Observations
- Despite the decrease in sales and other operating revenues over the majority of the period, operating income rose initially, reflecting improved profit margins and possibly better cost control. The peak performance around 2014-2015 was followed by a downturn in operating income and profit margins, coinciding with the period of lowest revenues. The partial recovery in sales in 2017 and 2018 did not translate into a return to previous profit margin levels, indicating ongoing challenges in maintaining profitability relative to revenue.
Comparison to Competitors
LyondellBasell Industries N.V., operating profit margin, long-term trends, comparison to competitors
| LyondellBasell Industries N.V. | Linde plc | |
|---|---|---|
| Dec 31, 2018 | 13.41% | 35.21% |
| Dec 31, 2017 | 15.83% | 21.40% |
| Dec 31, 2016 | 17.34% | 21.25% |
| Dec 31, 2015 | 18.70% | 21.54% |
| Dec 31, 2014 | 12.58% | 21.25% |
| Dec 31, 2013 | 11.58% | 22.01% |
| Dec 31, 2012 | 10.31% | 21.71% |
| Dec 31, 2011 | 7.83% | 21.93% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).