Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
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Long-term Activity Ratios (Summary)
LyondellBasell Industries N.V., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
The analysis of the quarterly financial ratios reveals several notable trends over the observed periods. The ratios reflect the efficiency of asset utilization and equity management by the company.
- Net Fixed Asset Turnover
- This ratio shows a clear declining trend from 5.06 in March 2015 to 2.77 in June 2019, indicating a decrease in the efficiency with which the company is using its net fixed assets to generate sales over time. After an initial sharp decline through 2016, the ratio stabilized somewhat but continued a gradual downward trajectory through mid-2019.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When considering operating leases and right-of-use assets, the ratio follows a similar downward pattern to the net fixed asset turnover alone, starting at 5.06 in early 2015 and falling to 2.48 by mid-2019. Noteworthy is the sharper decline between early 2018 and 2019, which suggests the impact of these additional assets in the calculation has exacerbated the perception of declining asset utilization efficiency in the most recent quarters.
- Total Asset Turnover
- The total asset turnover ratio also declined from a high of 1.78 in March 2015 to 1.18 in June 2019. The decline appears more gradual compared to the net fixed asset turnover ratios. The ratio experienced minor fluctuations but generally moved downward, indicating slower overall asset turnover and potentially less effective utilization of total assets to generate revenue over the analyzed timeframe.
- Equity Turnover
- Equity turnover decreased from 5.7 in March 2015 to 3.44 in June 2019. The decline was steadier initially, with a marked drop especially after Q4 2017. This suggests a reduced efficiency in generating sales relative to the equity base, which could imply either increased equity or slower sales growth during the latter periods.
In summary, all key turnover ratios depict a downward trend from 2015 through mid-2019. This points to diminishing efficiency in the company's use of its fixed assets, total assets, and equity to generate revenues. The incorporation of operating lease assets further amplifies the observed decline in asset turnover efficiency in recent periods. These trends may warrant further investigation into asset management strategies, capital structure, and operational performance to understand the underlying causes and address potential inefficiencies.
Net Fixed Asset Turnover
LyondellBasell Industries N.V., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Sales and other operating revenues | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q2 2019 Calculation
Net fixed asset turnover
= (Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019
+ Sales and other operating revenuesQ4 2018
+ Sales and other operating revenuesQ3 2018)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends over the analyzed periods. Sales and other operating revenues exhibit fluctuations with an overall upward movement from early 2015 through mid-2018, peaking around the third quarter of 2018. Following this peak, a decline is observable in late 2018 and through mid-2019, suggesting some volatility or external influences impacting revenue generation toward the end of the period.
Property, plant, and equipment, net, shows a consistent increase throughout the entire timeline. This steady growth suggests ongoing capital expenditures and asset accumulation, which may indicate expansion efforts or reinvestments in operational capacity.
The net fixed asset turnover ratio demonstrates an initial downward trend from early 2015 until the end of 2016, indicating decreasing efficiency in generating sales relative to fixed assets. However, starting from early 2017, the ratio shows a gradual recovery, climbing until late 2018, before declining again into mid-2019. This pattern implies fluctuating asset utilization efficiency, with improvement phases followed by renewed declines.
- Sales and Other Operating Revenues
- Experience growth until the third quarter of 2018, reaching the highest values in the series, followed by a downturn toward the middle of 2019.
- Property, Plant, and Equipment, Net
- Increase steadily across all periods, reflecting sustained investment in fixed assets without major reductions or impairments.
- Net Fixed Asset Turnover Ratio
- Decline from 2015 through 2016 indicates reduced efficiency in using fixed assets to generate sales, with partial recovery in 2017 and 2018. The subsequent decrease in 2019 suggests renewed challenges in asset utilization.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
LyondellBasell Industries N.V., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Sales and other operating revenues | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Operating lease assets | ||||||||||||||||||||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q2 2019 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019
+ Sales and other operating revenuesQ4 2018
+ Sales and other operating revenuesQ3 2018)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
-
Sales and other operating revenues exhibited fluctuations over the observed period. Initial figures showed an increase from the first quarter of 2015 to the second quarter, followed by a decline towards the end of the year. Revenues rebounded at the beginning of 2017, reaching a peak in the second quarter of 2018 before experiencing a decline in the last quarters through mid-2019. This pattern suggests a cyclicality in sales performance with periods of growth interrupted by downturns.
- Property, Plant, and Equipment, Net
-
The net value of property, plant, and equipment displayed a steady upward trend throughout the entire timeline. From just over 8.4 billion USD in early 2015, the figure increased consistently quarter over quarter, surpassing 14.8 billion USD by mid-2019. This steady increase indicates ongoing investment in fixed assets, possibly reflecting expansion activities or asset upgrades.
- Net Fixed Asset Turnover
-
Net fixed asset turnover showed a declining trend from the starting point in early 2015, falling from above 5.0 to below 3.0 by the end of 2016. Following this trough, the ratio experienced a modest recovery through 2017 and early 2018, reaching levels slightly above 3.3 before declining again in 2019. The turnover ratio's decline over time suggests that asset utilization efficiency diminished, potentially due to increased asset base outpacing sales growth.
- Overall Insights
-
The company demonstrated increasing fixed asset investments over the periods examined, whereas sales and operational revenues showed cyclical patterns with moderate growth and pauses. The decreasing net fixed asset turnover ratio, despite increasing revenues, implies less efficient use of assets to generate sales, possibly indicating a lag between capital expenditures and revenue benefits or changes in operational productivity. Monitoring of sales growth relative to asset investment would be advisable to ensure asset utilization aligns with revenue generation strategies.
Total Asset Turnover
LyondellBasell Industries N.V., total asset turnover calculation (quarterly data)
| Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Sales and other operating revenues | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q2 2019 Calculation
Total asset turnover
= (Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019
+ Sales and other operating revenuesQ4 2018
+ Sales and other operating revenuesQ3 2018)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several discernible trends across sales, total assets, and total asset turnover ratios over the observed periods.
- Sales and Other Operating Revenues
- Sales demonstrated variability within each year but showed a general upward trend from the beginning of the period to near the end of 2018. Starting at US$8,185 million in March 2015, revenues peaked multiple times, reaching a high of approximately US$10,206 million in June 2018. Following this peak, sales dropped notably in the last quarter of 2018 and early 2019, falling to US$8,778 million in March 2019. Overall, sales fluctuated seasonally but mostly trended upwards until late 2018 before a decline in early 2019.
- Total Assets
- Total assets exhibited a steady increase over the period. Beginning at US$24,006 million as of March 2015, total assets grew consistently, reaching US$31,171 million by June 2019. This steady asset growth suggests ongoing investments or asset accumulation, contributing to the expansion of the company’s asset base by almost 30% over the period.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which measures the efficiency of asset utilization to generate sales, showed a declining trend initially, dropping from 1.78 in March 2015 to a low around 1.22–1.24 in late 2016. This decline indicates a reduction in asset efficiency during this timeframe. From 2017 through 2018, the ratio stabilized and slightly improved, fluctuating near 1.3 to 1.39, suggesting some recovery in operational efficiency. However, in early 2019, the ratio declined again, falling to 1.18 by June 2019, signaling a decrease in how effectively assets were used to generate sales in that period.
In summary, while total assets increased steadily, sales experienced more volatility with a peak in mid-2018 followed by a decline. Meanwhile, the total asset turnover ratio generally decreased over the long term, reflecting challenges in translating asset growth into proportionate sales increases. The data suggests that despite asset growth, improvements in asset utilization efficiency remained inconsistent and weakened toward the end of the observed period.
Equity Turnover
LyondellBasell Industries N.V., equity turnover calculation (quarterly data)
| Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Sales and other operating revenues | ||||||||||||||||||||||||
| Total Company share of stockholders’ equity | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Linde plc | ||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q2 2019 Calculation
Equity turnover
= (Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019
+ Sales and other operating revenuesQ4 2018
+ Sales and other operating revenuesQ3 2018)
÷ Total Company share of stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in sales, equity, and efficiency measures over the examined periods.
- Sales and Other Operating Revenues
- Sales exhibited a fluctuating pattern, initially declining from a peak in mid-2015 through early 2016, hitting a low in the first quarter of 2016. Subsequently, sales experienced a gradual recovery and growth, reaching the highest recorded levels in mid-2018 with over US$10 billion. However, by mid-2019, sales showed a moderate decline compared to their peak, falling to levels closer to those seen in early 2017. Overall, the sales figures demonstrate volatility with periods of decline followed by notable recovery and growth phases.
- Total Company Share of Stockholders’ Equity
- Shareholders’ equity displayed a downward trend from early 2015 through the end of 2016, decreasing from approximately US$7.5 billion to around US$6 billion. Starting in 2017, equity levels began to rise significantly, surpassing US$8.9 billion by the fourth quarter of 2017 and continuing to increase through 2018, peaking at over US$11 billion in the third quarter of 2018. After this peak, equity showed a slight reduction but maintained levels generally above US$10 billion into mid-2019, indicating improved capitalization or retained earnings during the latter part of the timeframe.
- Equity Turnover Ratio
- The equity turnover ratio, indicating how efficiently equity is being used to generate sales, declined steadily from early 2015 through the end of 2017. Starting at 5.7 in the first quarter of 2015, it fell to 3.85 by the last quarter of 2017. This decrease continued into 2018, reaching a low point around 3.55. However, by early to mid-2019, a modest rebound was observed with the ratio improving slightly to approximately 3.75 before declining again. The overall trend suggests a reduction in sales generated per unit of equity over time, potentially reflecting either increased equity without proportional sales growth or operational challenges affecting sales efficiency.
In summary, while the company experienced fluctuations in sales with notable recovery in revenue after early 2016, the equity base exhibited a significant increase from 2017 onwards. The diminishing equity turnover ratio over the period indicates a declining efficiency in using shareholders' equity to generate sales, which may warrant further investigation into operational effectiveness or capital utilization strategies.