Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
LyondellBasell Industries N.V., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | LyondellBasell Industries N.V. gross profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | LyondellBasell Industries N.V. operating profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | LyondellBasell Industries N.V. net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | LyondellBasell Industries N.V. ROE deteriorated from 2016 to 2017 and from 2017 to 2018. |
| ROA | A profitability ratio calculated as net income divided by total assets. | LyondellBasell Industries N.V. ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level. |
Gross Profit Margin
LyondellBasell Industries N.V., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 6,475) | 6,425) | 5,992) | 7,052) | 6,669) | |
| Sales and other operating revenues | 39,004) | 34,484) | 29,183) | 32,735) | 45,608) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 16.60% | 18.63% | 20.53% | 21.54% | 14.62% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
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).
1 2018 Calculation
Gross profit margin = 100 × Gross profit ÷ Sales and other operating revenues
= 100 × 6,475 ÷ 39,004 = 16.60%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | LyondellBasell Industries N.V. gross profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Operating Profit Margin
LyondellBasell Industries N.V., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 5,231) | 5,460) | 5,060) | 6,122) | 5,736) | |
| Sales and other operating revenues | 39,004) | 34,484) | 29,183) | 32,735) | 45,608) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 13.41% | 15.83% | 17.34% | 18.70% | 12.58% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
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).
1 2018 Calculation
Operating profit margin = 100 × Operating income ÷ Sales and other operating revenues
= 100 × 5,231 ÷ 39,004 = 13.41%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | LyondellBasell Industries N.V. operating profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Net Profit Margin
LyondellBasell Industries N.V., net profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to the Company shareholders | 4,688) | 4,879) | 3,836) | 4,476) | 4,174) | |
| Sales and other operating revenues | 39,004) | 34,484) | 29,183) | 32,735) | 45,608) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 12.02% | 14.15% | 13.14% | 13.67% | 9.15% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
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).
1 2018 Calculation
Net profit margin = 100 × Net income attributable to the Company shareholders ÷ Sales and other operating revenues
= 100 × 4,688 ÷ 39,004 = 12.02%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | LyondellBasell Industries N.V. net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Return on Equity (ROE)
LyondellBasell Industries N.V., ROE calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to the Company shareholders | 4,688) | 4,879) | 3,836) | 4,476) | 4,174) | |
| Total Company share of stockholders’ equity | 10,257) | 8,949) | 6,048) | 6,550) | 8,314) | |
| Profitability Ratio | ||||||
| ROE1 | 45.71% | 54.52% | 63.43% | 68.34% | 50.20% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
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).
1 2018 Calculation
ROE = 100 × Net income attributable to the Company shareholders ÷ Total Company share of stockholders’ equity
= 100 × 4,688 ÷ 10,257 = 45.71%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | LyondellBasell Industries N.V. ROE deteriorated from 2016 to 2017 and from 2017 to 2018. |
Return on Assets (ROA)
LyondellBasell Industries N.V., ROA calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to the Company shareholders | 4,688) | 4,879) | 3,836) | 4,476) | 4,174) | |
| Total assets | 28,278) | 26,206) | 23,442) | 22,757) | 24,283) | |
| Profitability Ratio | ||||||
| ROA1 | 16.58% | 18.62% | 16.36% | 19.67% | 17.19% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
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).
1 2018 Calculation
ROA = 100 × Net income attributable to the Company shareholders ÷ Total assets
= 100 × 4,688 ÷ 28,278 = 16.58%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | LyondellBasell Industries N.V. ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level. |