LyondellBasell Industries N.V. (NYSE:LYB)

Debt to Equity Ratio

The debt to equity ratio demonstrated a gradual increase from early 2015, rising from around 1.11 to a peak of approximately 1.49 in late 2016. From 2017 onward, this ratio exhibited a downward trend, declining to about 0.78 by the end of 2018, before slightly rising to near 0.97 by mid-2019. This indicates a reduction in leverage relative to equity after 2016, followed by a modest increase during 2019.

Debt to Equity Ratio Including Operating Lease Liability

This metric tracked the standard debt to equity ratio closely until the end of 2018, after which it diverged upward, climbing from 0.92 in early 2019 to around 1.09 by mid-2019. The inclusion of operating lease liabilities suggests a material effect on leverage measures beginning in 2019, indicating increased obligations not captured under traditional debt.

Debt to Capital Ratio

The debt to capital ratio showed a steady increase from 0.53 in early 2015 to about 0.60 in late 2016, reflecting a rise in total debt as a proportion of capital. After peaking, the ratio declined gradually to approximately 0.44 by late 2018, then experienced a slight rise to just under 0.50 in mid-2019. This pattern aligns with the general reduction in leverage following 2016.

Debt to Capital Ratio Including Operating Lease Liability

Similar to the standard debt to capital ratio, this measure remained close through 2018. However, starting in 2019, the ratio increased more noticeably, reaching about 0.52 by mid-2019. This increase reflects the inclusion of operating lease liabilities, underscoring their growing impact on the company's capital structure during this period.

Debt to Assets Ratio

From 2015 to 2016, the debt to assets ratio increased from roughly 0.34 to 0.39, showing a greater share of assets financed by debt. After this period, the ratio declined gradually, reaching a low close to 0.30 by late 2018, indicating a reduction in leverage relative to total assets. By mid-2019, the ratio rose modestly again to about 0.33.

Debt to Assets Ratio Including Operating Lease Liability

This ratio followed the trend of the traditional debt to assets measure until late 2018. In 2019, however, it increased more significantly, moving from 0.33 to approximately 0.38 by mid-year. The increase reflects additional liabilities from operating leases affecting the asset financing structure.

Financial Leverage

Financial leverage increased steadily from 3.21 in early 2015 to a peak near 3.88 in late 2016, demonstrating heightened use of debt financing. Afterwards, the ratio declined to 2.55 by late 2018, suggesting reduced leverage and possibly an increase in equity or asset base. Subsequently, a moderate increase to around 2.91 was observed in mid-2019.

Interest Coverage Ratio

The interest coverage ratio remained relatively high from 2015 through 2016, fluctuating around 17 to 21 times, indicating strong earnings relative to interest expenses. However, a notable decline began at the end of 2016, with the ratio dropping to approximately 11.8 by late 2017. Despite a partial recovery to above 16 by mid-2018, the ratio declined again afterwards, reaching around 13.4 by mid-2019. This downward trend points to increased interest burdens or reduced earnings capacity for interest payments during the latter periods.

Total Debt

The total debt showed a generally increasing trend over the analyzed periods. Beginning at $8,267 million in March 2015, it fluctuated slightly through 2015, reaching $8,028 million by December 2015. Starting in early 2016, total debt increased steadily, peaking at $10,402 million by June 2019. This represents a significant rise in leverage over the four-year span, with occasional minor decreases in some quarters, such as the drop in December 2017. Overall, the upward movement indicates an increasing reliance on debt financing.

Total Company Share of Stockholders’ Equity

Stockholders’ equity exhibited more volatility compared to total debt. From $7,478 million in March 2015, equity decreased to a low of $6,048 million by December 2016. Subsequently, it reversed trend and increased substantially, reaching a peak of $11,044 million in September 2018. After this peak, equity cautiously declined again, settling around $10,721 million in June 2019. This pattern suggests initial pressure on equity value in the first two years followed by a recovery and strengthening before a mild retreat towards mid-2019.

Debt to Equity Ratio

The debt-to-equity ratio mirrored the fluctuations of both debt and equity. Initially around 1.11 in March 2015, it trended upwards to a high of 1.49 in September 2016, indicating increasing leverage primarily driven by relatively high debt and lower equity levels during that period. From late 2016 through 2018, the ratio steadily declined to as low as 0.78 in December 2018, reflecting a period of strengthening equity and controlled debt growth. However, in the first half of 2019, the ratio climbed again to approximately 0.97, denoting a modest increase in leverage. Overall, the ratio reflects phases of increasing and decreasing financial leverage consistent with the trends in debt and equity.

Total Debt (including operating lease liability)

Over the observed periods from March 2015 to June 2019, total debt exhibited fluctuations with a general upward trend towards the end of the timeline. The debt remained relatively steady around the 8,000 to 9,000 million USD range between 2015 and early 2018, but a marked increase is noted starting from early 2019, pushing total debt above 11,000 million USD by June 2019. This signals a notable rise in financial leverage in the most recent quarters.

Total Company Shareholders’ Equity

Shareholders' equity displayed variation across the periods, initially declining from approximately 7,478 million USD in early 2015 to a low near 6,048 million USD at the end of 2016. Thereafter, a recovery phase is noticeable with consistent increases through 2017 and into 2018, reaching a peak over 11,000 million USD in late 2018. In early 2019, a slight decline occurs but remains above 10,000 million USD. This trend suggests an improving equity base for a majority of the observed timeframe, with some volatility in the latest quarters.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio starts at around 1.11 in the first quarter of 2015, showing an upward movement through to the end of 2016 where it peaks near 1.49, reflecting a period of increasing leverage relative to equity. From early 2017, this ratio declines steadily to a low of approximately 0.78 by the end of 2018, indicating a significant reduction in leverage relative to the equity base. However, a reversal occurs in early 2019, with the ratio rising again to above 1.1 by mid-2019. This pattern suggests cycles of leverage adjustments, with a period of deleveraging followed by renewed borrowing in the latest quarters.

Overall Insights

The data reflects a dynamic capital structure over the analyzed periods. The initial increase in leverage and debt was accompanied by declining equity, pointing to a period of financial consolidation or stress. Subsequently, the company strengthened its equity position notably through 2017 and 2018, reducing leverage as indicated by the decreasing debt-to-equity ratio. The recent increases in both total debt and leverage ratios in early 2019 may signal new strategic investments or financing needs. Continuous monitoring of these trends is advised to assess the impact on financial stability and risk profile.

Total Debt

The total debt exhibited a generally increasing trend over the observed periods. Starting at approximately $8.27 billion in the first quarter of 2015, debt levels experienced gradual growth, reaching a peak of around $10.4 billion by mid-2019. There were slight fluctuations, with a minor peak towards the end of 2015 and a decrease late in 2017 before continuing the upward trend. The overall trend suggests increased leverage or financing requirements over the examined timeframe.

Total Capital

Total capital showed modest growth from around $15.7 billion in early 2015 to over $21.1 billion by mid-2019. Initially, there was some variability with a decline through 2015, but from late 2016 onward, the capital base generally increased each quarter. The capital growth rate appears steadier in the latter years, indicating a stable or expanding asset base accompanied by potentially retained earnings or new equity injections.

Debt to Capital Ratio

The debt-to-capital ratio started near 0.53 in early 2015 and showed some volatility through 2016, reaching as high as 0.60. From around late 2016 to late 2018, the ratio exhibited a declining trend, improving from 0.60 down to approximately 0.44. This indicates a relative reduction in leverage during that period, likely due to either debt reduction or capital expansion outpacing debt growth. However, this trend reversed starting in late 2018, with the ratio climbing back to approximately 0.49 by mid-2019, reflecting an increase in leverage. Overall, the ratio remained within a range of roughly 0.44 to 0.60, showing moderate leverage with periods of strengthening and weakening capital structure.

Total Debt (including operating lease liability)

The total debt levels demonstrated moderate fluctuation from March 2015 through June 2019. Starting at 8,267 million USD in March 2015, the debt remained relatively stable around 8,000 to 9,000 million USD until the end of 2017. From early 2018, debt levels increased steadily, peaking at 11,706 million USD in June 2019. This upward trend shows a marked increase in leverage within this later period.

Total Capital (including operating lease liability)

Total capital showed a gradual upward trend over the time span. Beginning at 15,745 million USD in March 2015, total capital fluctuated modestly but increased consistently from 2017 onwards, reaching 22,427 million USD by June 2019. This indicates an expansion in the company’s capital base, supporting growth and possibly funding acquisitions or other investments.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio exhibited variability over the period analyzed. Initially, it hovered around 0.50 to 0.55 from 2015 through 2016, indicating a balanced capital structure. Notably, the ratio decreased from 0.55 in December 2015 to a low of 0.44 by September 2018, reflecting a relative reduction in debt proportion compared to total capital. However, from late 2018 to mid-2019, the ratio increased back to approximately 0.52, reflecting the increasing debt levels observed towards the end of the period. This suggests a shift towards higher financial leverage during the last observed quarters.

Overall Analysis

Overall, the company’s capital structure shows a pattern of increasing capitalization coupled with changes in debt levels. The initial period was characterized by stable debt and modest capital growth. In recent years, total capital has increased substantially, likely supporting business expansion. Meanwhile, the corresponding rise in total debt and the resulting increase in the debt to capital ratio in the final quarters indicate a strategic move towards higher leverage. This could reflect increased borrowing to finance investments or operational needs, which may carry implications for financial risk and cost of capital going forward.

Total Debt

The total debt exhibited a generally increasing trend over the analyzed periods. Starting at 8,267 million USD at the end of the first quarter of 2015, it remained relatively stable through 2015 with minor fluctuations. However, from 2016 onward, the debt showed gradual growth, reaching 10,402 million USD by the second quarter of 2019. This indicates an increased reliance on debt financing over the reviewed timeframe.

Total Assets

Total assets demonstrated a consistent upward trajectory throughout the periods. From 24,006 million USD in March 2015, the asset base grew steadily, surpassing 31,000 million USD by mid-2019. This expansion of assets suggests ongoing investment or asset acquisition activities, contributing to the company's growth in scale.

Debt to Assets Ratio

The debt to assets ratio showed some variation but maintained a relatively stable range. Initially, the ratio hovered around 0.34 to 0.35 in 2015, followed by an increase to approximately 0.39 in 2016, indicating a higher proportion of debt relative to assets during that period. From late 2016 onward, the ratio declined gradually, reaching around 0.30 by the end of 2018, which reflects improved leverage management or growth in asset value outpacing debt increments. In 2019, the ratio slightly increased again to approximately 0.33, signaling a modest rise in leverage.

Overall Insights

The company’s growth in total assets alongside the increase in total debt suggests strategic expansion potentially supported by external financing. The fluctuations in the debt to assets ratio indicate periods of increased leverage followed by deleveraging phases, highlighting dynamic capital structuring. The relatively moderate ratio values, mostly below 0.4, imply a balanced approach to leveraging assets with debt, maintaining a consistent capital structure without excessive risk escalation.

The financial data reveals several notable trends in debt, assets, and leverage ratios over the examined periods.

Total Debt

Total debt, including operating lease liability, showed a general increase over the analyzed timeframe. Beginning around US$8.3 billion in early 2015, debt remained relatively stable through 2015 but rose significantly beginning in 2016, peaking near US$11.7 billion by mid-2019. Some fluctuations were observed toward the end of 2017 and 2018 with minor decreases, but the overall trajectory points to rising leverage obligations.

Total Assets

Total assets experienced a steady increase from approximately US$24 billion at the start of 2015 to over US$31 billion by mid-2019. Asset growth was consistent, particularly from late 2016 onward, indicating expansion or acquisition activity contributing to a larger asset base. The upward trend in assets somewhat parallels the increase in total debt, suggesting that the company may have financed asset growth through increased borrowing.

Debt to Assets Ratio

The ratio of debt to assets fluctuated within a moderate range, exhibiting an initial rise from 0.34 in early 2015 to nearly 0.39 by mid-2016, indicating increasing leverage relative to assets. Thereafter, the ratio declined to a low of around 0.30 by late 2018, reflecting an improved debt position relative to asset size. However, the ratio reversed course in 2019, climbing again to approximately 0.38 by mid-year, consistent with the observed increases in total debt.

In summary, the data illustrates a company experiencing asset growth accompanied by rising total debt levels. While the leverage ratio improved temporarily during 2017 and 2018, recent periods indicate a renewed increase in financial leverage. These patterns suggest cyclical financing strategies potentially aligned with capital expenditures or strategic investments.

Total Assets

Total assets exhibited a generally upward trend over the observed periods, starting at approximately $24 billion and increasing to over $31 billion by mid-2019. There was a minor decline toward the end of 2015, but from early 2016 onward, assets consistently grew, with particularly notable jumps during 2017 and early 2018. This suggests ongoing asset accumulation or acquisition activity during this timeframe.

Total Company Share of Stockholders’ Equity

Shareholders' equity showed some volatility but an overall positive growth trend through the period. It initially declined from roughly $7.5 billion to about $6 billion by the end of 2016, signaling a possible reduction in equity or increased liabilities. However, starting in 2017, equity increased substantially, reaching over $10.7 billion by mid-2019. This improvement indicates strengthened net asset value and possibly retained earnings or capital injection contributing to shareholder equity growth.

Financial Leverage

The financial leverage ratio varied notably, starting above 3.2 and peaking near 3.9 at the end of 2016. This indicates an increasing use of debt relative to equity during the initial years. From 2017 onwards, the ratio declined significantly, dropping below 3.0 in late 2017 and further to approximately 2.9 by mid-2019. The reduction in leverage suggests a deleveraging strategy, reflecting decreased reliance on debt financing compared to equity. This shift may imply a stronger capital structure and less financial risk moving forward.

Earnings before interest and tax (EBIT)

The EBIT values demonstrate considerable fluctuation over the examined quarters, with a peak of 1946 million US dollars in June 2015 and a notable decline to 884 million US dollars in December 2018. Following this trough, a moderate recovery is observed, reaching 1256 million US dollars by June 2019. Overall, the data suggests volatility in operational profitability, with intermittent periods of strengthening, especially noticeable in mid-2017 and mid-2018, and substantial decreases toward the end of 2018.

Interest expense

Interest expense remains relatively stable throughout the period, oscillating narrowly around the 70 to 90 million US dollars mark in most quarters. However, an outlier occurs in March 2017 where interest expense spikes significantly to 207 million US dollars, before returning to the prior range in subsequent quarters. This anomaly may indicate specific financing events or restructuring during that period.

Interest coverage ratio

The interest coverage ratio displays a downward trend from the initial values exceeding 19 in early 2015, to values near 13 by mid-2019. This decline reflects a decreasing ability to cover interest expenses from operational earnings, likely influenced by the described EBIT fluctuations and the spike in interest expense observed in early 2017. Despite some stabilization phases in 2017 and 2018, the overall trend indicates a moderation in financial safety margins relative to interest obligations over time.

Summary of trends and insights

The financial data indicates that operating profitability has faced significant volatility, with periods of growth offset by notable downturns, especially toward the end of the period reviewed. Interest expenses are mostly consistent except for a significant, isolated increase, which temporarily impacted financial ratios. The declining interest coverage ratio throughout the time frame signals increasing pressure on earnings to cover interest obligations, suggesting a potential area for financial attention. The interplay between EBIT fluctuations and interest expenses is critical in interpreting the changing financial risk profile over these quarters.