Return on Equity (ROE)
since 2011
Calculation
LyondellBasell Industries N.V., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to the Company shareholders1 | ÷ | Total Company share of stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 45.71% | = | 100 | × | 4,688) | ÷ | 10,257) |
| Dec 31, 2017 | 54.52% | = | 100 | × | 4,879) | ÷ | 8,949) |
| Dec 31, 2016 | 63.43% | = | 100 | × | 3,836) | ÷ | 6,048) |
| Dec 31, 2015 | 68.34% | = | 100 | × | 4,476) | ÷ | 6,550) |
| Dec 31, 2014 | 50.20% | = | 100 | × | 4,174) | ÷ | 8,314) |
| Dec 31, 2013 | 30.91% | = | 100 | × | 3,857) | ÷ | 12,478) |
| Dec 31, 2012 | 25.57% | = | 100 | × | 2,848) | ÷ | 11,139) |
| Dec 31, 2011 | 20.27% | = | 100 | × | 2,147) | ÷ | 10,593) |
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
The financial performance from 2011 to 2018 is characterized by a significant expansion in Return on Equity (ROE), which rose from 20.27% in 2011 to a peak of 68.34% in 2015, before moderating to 45.71% by 2018.
- Net Income Trends
- Net income attributable to company shareholders exhibited a consistent upward trajectory for the majority of the period. Earnings grew from US$ 2,147 million in 2011 to a peak of US$ 4,879 million in 2017, indicating a sustained increase in absolute profitability over the seven-year span.
- Stockholders' Equity Volatility
- A notable fluctuation in total stockholders' equity is observed. After reaching a high of US$ 12,478 million in 2013, equity declined sharply to a low of US$ 6,048 million by 2016. This contraction was followed by a recovery phase, with equity increasing to US$ 10,257 million by the end of 2018.
- ROE Driver Analysis
- The rapid acceleration of ROE between 2013 (30.91%) and 2015 (68.34%) was driven by the simultaneous occurrence of rising net income and a substantial reduction in the equity base. The subsequent decline in ROE from 2016 to 2018 is primarily attributable to the reconstitution of stockholders' equity, which increased the denominator of the ratio while net income levels remained relatively stable.
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Comparison to Competitors
LyondellBasell Industries N.V., ROE, long-term trends, comparison to competitors
| LyondellBasell Industries N.V. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2018 | 45.71% | 8.49% | 29.72% |
| Dec 31, 2017 | 54.52% | 20.72% | 48.00% |
| Dec 31, 2016 | 63.43% | 29.87% | 60.30% |
| Dec 31, 2015 | 68.34% | 35.25% | 121.42% |
| Dec 31, 2014 | 50.20% | 30.13% | 86.90% |
| Dec 31, 2013 | 30.91% | 26.55% | 42.41% |
| Dec 31, 2012 | 25.57% | 27.90% | 35.22% |
| Dec 31, 2011 | 20.27% | 30.47% | 29.13% |
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).
Comparison to Sector (Chemicals)
LyondellBasell Industries N.V., ROE, long-term trends, comparison to sector (chemicals)
| LyondellBasell Industries N.V. | Chemicals | |
|---|---|---|
| Dec 31, 2018 | 45.71% | 9.92% |
| Dec 31, 2017 | 54.52% | 31.09% |
| Dec 31, 2016 | 63.43% | 38.16% |
| Dec 31, 2015 | 68.34% | 49.47% |
| Dec 31, 2014 | 50.20% | 38.67% |
| Dec 31, 2013 | 30.91% | 29.91% |
| Dec 31, 2012 | 25.57% | 29.57% |
| Dec 31, 2011 | 20.27% | 30.18% |
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).
Comparison to Industry (Materials)
LyondellBasell Industries N.V., ROE, long-term trends, comparison to industry (materials)
| LyondellBasell Industries N.V. | Materials | |
|---|---|---|
| Dec 31, 2018 | 45.71% | 12.42% |
| Dec 31, 2017 | 54.52% | 27.34% |
| Dec 31, 2016 | 63.43% | -11.75% |
| Dec 31, 2015 | 68.34% | -73.64% |
| Dec 31, 2014 | 50.20% | 5.03% |
| Dec 31, 2013 | 30.91% | 17.62% |
| Dec 31, 2012 | 25.57% | 21.12% |
| Dec 31, 2011 | 20.27% | 29.47% |
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).