Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
LyondellBasell Industries N.V., profitability 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
- Gross Profit Margin
- The gross profit margin demonstrates an upward trend from March 2015 through March 2016, beginning at 14.62% and rising to a peak of 21.8%. Following this peak, there is a gradual decline observed over the subsequent quarters, ending at 15.31% by June 2019. This suggests that the company initially improved its core profitability but faced margin compression in later periods.
- Operating Profit Margin
- Operating profit margin followed a similar pattern to the gross profit margin, increasing from 12.58% in March 2015 to a high of 18.88% in June 2016. After this peak, it experienced a steady decline, falling to 11.68% by June 2019. The trend indicates that operating efficiency improved initially but weakened in the later periods, potentially due to increased operating costs or competitive pressures.
- Net Profit Margin
- The net profit margin showed consistent growth from 9.15% in March 2015 to reach a maximum of 15.51% in September 2018, indicating effective management of non-operating expenses and taxes in addition to core operations. However, after this peak, the margin decreased notably to 9.82% by June 2019, reflecting reduced overall profitability in the most recent quarters.
- Return on Equity (ROE)
- Return on equity displayed a strong upward trend starting at 50.2% in March 2015, reaching its highest value of 68.41% in June 2016. Despite some volatility, it remained above 50% until March 2018, after which a pronounced decline occurred, dropping to 33.77% by June 2019. This decline suggests diminishing effectiveness in generating profits from shareholders’ equity over the latter part of the period.
- Return on Assets (ROA)
- Return on assets grew steadily from 17.19% in March 2015 to 21.6% in September 2018, highlighting improved asset utilization. Following that peak, the ratio fell sharply to 11.61% by June 2019, which could indicate reduced asset efficiency or lower asset turnover in recent times.
Return on Sales
Return on Investment
Gross Profit Margin
LyondellBasell Industries N.V., gross profit margin 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Gross profit | 1,506) | 1,332) | 1,148) | 1,656) | 1,916) | 1,755) | 1,607) | 1,577) | 1,802) | 1,439) | 1,327) | 1,462) | 1,626) | 1,577) | 1,279) | 1,869) | 2,098) | 1,806) | 1,301) | 1,948) | 1,862) | 1,558) | |||||||
| Sales and other operating revenues | 9,048) | 8,778) | 8,876) | 10,155) | 10,206) | 9,767) | 9,135) | 8,516) | 8,403) | 8,430) | 7,747) | 7,365) | 7,328) | 6,743) | 7,071) | 8,334) | 9,145) | 8,185) | 10,290) | 12,066) | 12,117) | 11,135) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 15.31% | 15.92% | 16.60% | 17.66% | 18.22% | 18.82% | 18.63% | 18.57% | 18.88% | 18.96% | 20.53% | 20.85% | 21.55% | 21.80% | 21.54% | 19.68% | 18.02% | 16.22% | 14.62% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q2 2019 Calculation
Gross profit margin = 100
× (Gross profitQ2 2019
+ Gross profitQ1 2019
+ Gross profitQ4 2018
+ Gross profitQ3 2018)
÷ (Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019
+ Sales and other operating revenuesQ4 2018
+ Sales and other operating revenuesQ3 2018)
= 100 × (1,506 + 1,332 + 1,148 + 1,656)
÷ (9,048 + 8,778 + 8,876 + 10,155)
= 15.31%
2 Click competitor name to see calculations.
The financial data exhibits various trends in gross profit, sales and other operating revenues, and gross profit margin over the specified periods.
- Gross Profit
- Gross profit shows notable fluctuations across the periods, with initial values ranging between 1,300 and 1,900 million US dollars during 2014 and 2015. A decline is evident around late 2015, hitting a lower point near 1,279 million, followed by a modest recovery and relative stability through 2016 and 2017, fluctuating between approximately 1,300 and 1,800 million. In 2018, there was an increase reaching peaks close to 1,900 million, although this upward trend reversed sharply towards the end of 2018 and into 2019, where figures dropped back below 1,500 million.
- Sales and Other Operating Revenues
- This item reveals a generally decreasing trend from early 2014 to late 2015, starting around 11,000 million US dollars and declining consistently to under 7,100 million by the end of 2015. Post-2015, revenues begin to stabilize and then gradually increase through 2016 to 2018, reaching levels slightly above 10,000 million in early 2018. However, a downward adjustment is observed in 2019, with values falling back to below 9,000 million. The trend indicates a recovery phase between 2016 and 2018 following a period of contraction.
- Gross Profit Margin
- Margin data, available from March 2015 onwards, shows an improving trend in the early periods of 2015, increasing from approximately 14.62% to a peak of about 21.8% by mid-2016. Following this peak, there is a gradual, consistent decline in margin through the subsequent periods, decreasing to near 15.31% by mid-2019. This indicates that despite some recovery in gross profit and revenues, profitability as a percentage of sales contracted significantly after 2016.
Overall, the data reflect a phase of declining sales and gross profit through 2014 to 2015 with recovering revenues and profit levels into 2018, accompanied by a peak and then a steady decline in gross profit margin. By 2019, both gross profit and revenues decreased, aligning with a continued downward trend in margin, suggesting tightening profitability in the most recent quarters observed.
Operating Profit Margin
LyondellBasell Industries N.V., operating profit margin 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating income | 1,177) | 1,017) | 794) | 1,317) | 1,626) | 1,494) | 1,341) | 1,332) | 1,577) | 1,210) | 1,048) | 1,249) | 1,403) | 1,360) | 1,052) | 1,650) | 1,845) | 1,575) | 1,077) | 1,706) | 1,613) | 1,340) | |||||||
| Sales and other operating revenues | 9,048) | 8,778) | 8,876) | 10,155) | 10,206) | 9,767) | 9,135) | 8,516) | 8,403) | 8,430) | 7,747) | 7,365) | 7,328) | 6,743) | 7,071) | 8,334) | 9,145) | 8,185) | 10,290) | 12,066) | 12,117) | 11,135) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | 11.68% | 12.51% | 13.41% | 14.72% | 15.40% | 16.04% | 15.83% | 15.61% | 15.91% | 15.91% | 17.34% | 17.76% | 18.54% | 18.88% | 18.70% | 17.10% | 15.63% | 14.00% | 12.58% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q2 2019 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2019
+ Operating incomeQ1 2019
+ Operating incomeQ4 2018
+ Operating incomeQ3 2018)
÷ (Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019
+ Sales and other operating revenuesQ4 2018
+ Sales and other operating revenuesQ3 2018)
= 100 × (1,177 + 1,017 + 794 + 1,317)
÷ (9,048 + 8,778 + 8,876 + 10,155)
= 11.68%
2 Click competitor name to see calculations.
The financial data shows several key trends in operating income, sales and revenues, and operating profit margin over the reviewed quarters.
- Operating Income
- The operating income exhibits notable volatility throughout the periods. Initial quarters in 2014 reveal a rising trend, climbing from 1340 million USD in March to a peak of 1706 million USD in September, before declining towards the end of the year. In 2015, operating income trends similarly, with highs in mid-year (1845 million USD in June) and lows at year-end (1052 million USD in December). The subsequent years show fluctuations with periodic increases quarterly, yet the peak values observed in 2017 are marginally lower than in earlier years, and there is a general downward pressure leading into 2019, where operating income dips below 1200 million USD, reaching 794 million USD in March 2019 before partially recovering.
- Sales and Other Operating Revenues
- Sales and other operating revenues demonstrate a contrasting trend compared to operating income. A steady decline is prominent between early 2014 and late 2015, dropping from approximately 11,135 million USD down to near 7,071 million USD. Starting from 2016, the revenues gradually increase, reaching a maximum of about 10,206 million USD in mid-2018. However, after this peak, there is another downward trend evident in late 2018 and into 2019, with revenues closing around 9,048 million USD in the second quarter of 2019. Thus, while the earlier years faced contraction, the mid-period shows recovery before a slight downturn again.
- Operating Profit Margin
- Operating profit margin data, available starting in the first quarter of 2015, indicates an overall improvement in profitability relative to sales through 2016 and 2017. The margin rises steadily from 12.58% in early 2015 to a peak of 18.88% in the second quarter of 2016. From then on, the margin remains within a range of approximately 15% to 18%, with periodic fluctuations but no clear directional trend upward or downward through 2017 and most of 2018. Towards the final quarters included in the data—late 2018 and into 2019—the margin observes a decline, falling from about 14.72% to 11.68%. This suggests a compression of profitability despite the somewhat stable revenues during that timeframe.
Overall, the data reveals that while sales and revenues have shown signs of recovery post-2015 declines, operating income and profit margins have faced challenges, particularly during 2018 and early 2019. The volatility in operating income contrasts with more stable, though fluctuating, margins, implying variations in cost management or operational efficiency. The decreasing margins in recent quarters may warrant further analysis into expense control or market conditions impacting profitability.
Net Profit Margin
LyondellBasell Industries N.V., net profit margin 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to the Company shareholders | 1,002) | 815) | 690) | 1,113) | 1,654) | 1,231) | 1,894) | 1,057) | 1,131) | 797) | 763) | 952) | 1,091) | 1,030) | 795) | 1,185) | 1,330) | 1,166) | 793) | 1,258) | 1,178) | 945) | |||||||
| Sales and other operating revenues | 9,048) | 8,778) | 8,876) | 10,155) | 10,206) | 9,767) | 9,135) | 8,516) | 8,403) | 8,430) | 7,747) | 7,365) | 7,328) | 6,743) | 7,071) | 8,334) | 9,145) | 8,185) | 10,290) | 12,066) | 12,117) | 11,135) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | 9.82% | 11.24% | 12.02% | 15.01% | 15.51% | 14.83% | 14.15% | 11.32% | 11.40% | 11.67% | 13.14% | 13.57% | 13.91% | 13.87% | 13.67% | 12.44% | 11.46% | 10.30% | 9.15% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q2 2019 Calculation
Net profit margin = 100
× (Net income attributable to the Company shareholdersQ2 2019
+ Net income attributable to the Company shareholdersQ1 2019
+ Net income attributable to the Company shareholdersQ4 2018
+ Net income attributable to the Company shareholdersQ3 2018)
÷ (Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019
+ Sales and other operating revenuesQ4 2018
+ Sales and other operating revenuesQ3 2018)
= 100 × (1,002 + 815 + 690 + 1,113)
÷ (9,048 + 8,778 + 8,876 + 10,155)
= 9.82%
2 Click competitor name to see calculations.
- Net Income Attributable to the Company Shareholders
- The net income figures exhibit a cyclical pattern with fluctuations across quarters. From March 2014 to December 2014, the net income increased from 945 million USD to 1,258 million USD, followed by a decline to 795 million USD by the end of 2014. In the subsequent year, 2015, net income again peaked mid-year at 1,330 million USD but then fell to 795 million USD by December. During 2016, net income remained relatively stable with slight declines, ranging between 952 and 763 million USD. In 2017, a gradual increase is observed, culminating in a strong fourth quarter net income of 1,894 million USD. The upward trend continued into early 2018 with 1,231 million USD in the first quarter, but this was followed by volatility throughout 2018 and early 2019, with net income dropping to 690 million USD by March 2019 before rising moderately again to 1,002 million USD by June 2019.
- Sales and Other Operating Revenues
- Sales and revenues show an overall declining trend from 2014 through 2019, with quarterly fluctuations. Starting at 11,135 million USD in the first quarter of 2014, revenues increased into the mid-year quarters, peaking at over 12,000 million USD at times, then steadily dropped to 7,071 million USD by December 2015. From 2016, revenues stabilized somewhat between 6,700 and 7,700 million USD initially, before gradually increasing from 2017 onward, reaching a notable high of 10,206 million USD in September 2018. However, after this peak, a decrease is observed again, ending the period at 9,048 million USD in June 2019.
- Net Profit Margin
- The net profit margin shows a clear upward trajectory over the examined periods, reflecting improved profitability relative to sales. Starting at 9.15% in March 2014, the margin increased steadily through 2015, reaching a peak of over 13.91% in the third quarter of 2016. Margins remained consistently above 11% through 2017 and 2018, hitting a high of 15.51% in September 2018. Thereafter, margins declined somewhat but stayed above 9%, ending at 9.82% in June 2019. This pattern suggests increasing operational efficiency and profitability despite the fluctuations in sales and net income.
- Overall Trends and Insights
- The data indicate that while sales and operating revenues showed volatility with a general decline followed by partial recovery, net income displayed significant quarter-to-quarter variability. Notably, net income peaks did not always correspond directly with peak sales, suggesting other factors influencing profitability. The rising net profit margin throughout much of the period points to effective cost management or improved pricing strategies, supporting profitability even when revenues fluctuated. The sharp net income increase in late 2017 signals a possible operational or market event positively impacting results. The subsequent fluctuations highlight the cyclical nature of the business environment faced by the company during this timeframe.
Return on Equity (ROE)
LyondellBasell Industries N.V., ROE 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 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to the Company shareholders | 1,002) | 815) | 690) | 1,113) | 1,654) | 1,231) | 1,894) | 1,057) | 1,131) | 797) | 763) | 952) | 1,091) | 1,030) | 795) | 1,185) | 1,330) | 1,166) | 793) | 1,258) | 1,178) | 945) | |||||||
| Total Company share of stockholders’ equity | 10,721) | 10,138) | 10,257) | 11,044) | 10,602) | 9,728) | 8,949) | 7,326) | 6,866) | 6,462) | 6,048) | 6,082) | 6,283) | 6,344) | 6,550) | 7,328) | 7,927) | 7,478) | 8,314) | 9,843) | 10,753) | 11,791) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | 33.77% | 42.14% | 45.71% | 53.35% | 55.05% | 54.62% | 54.52% | 51.16% | 53.06% | 55.76% | 63.43% | 63.60% | 65.27% | 68.41% | 68.34% | 61.05% | 57.36% | 58.77% | 50.20% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q2 2019 Calculation
ROE = 100
× (Net income attributable to the Company shareholdersQ2 2019
+ Net income attributable to the Company shareholdersQ1 2019
+ Net income attributable to the Company shareholdersQ4 2018
+ Net income attributable to the Company shareholdersQ3 2018)
÷ Total Company share of stockholders’ equity
= 100 × (1,002 + 815 + 690 + 1,113)
÷ 10,721 = 33.77%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in profitability and equity metrics over the observed periods.
- Net Income Attributable to Company Shareholders
- The net income shows a cyclical pattern with some fluctuations across quarters. Initial values display a rising trend from $945 million in March 2014 to a peak of $1,330 million in June 2015, followed by a decline towards the end of that year. The subsequent years show recurrent increases and decreases, with a significant peak of $1,894 million in December 2017. Post this peak, net income generally tends to decline, reaching $690 million in March 2018 and fluctuating thereafter, ending at $1,002 million in June 2019. Overall, the income figures suggest volatility with intermittent growth spurts.
- Total Company Shareholders’ Equity
- The shareholders’ equity exhibits a downward trend initially, decreasing from $11,791 million in March 2014 to a low of $6,048 million in December 2016. However, from early 2017 onwards, there is a recovery trend with equity rising steadily to $11,044 million by September 2018. A slight decline follows towards early 2019 but equity remains significantly higher than the earlier low. This pattern indicates a period of capital erosion followed by a phase of rebuilding shareholder value.
- Return on Equity (ROE)
- ROE is absent for earlier periods but shows exceptionally high levels once reported, peaking at over 68% in mid-2016. From this high point, ROE demonstrates a gradual downward trend across subsequent quarters, falling to approximately 34% by June 2019. Despite this decline, ROE remains robust, suggesting that the company maintains profitable returns relative to equity despite volatility. The decline in ROE aligns with the reduced net income growth and the increasing equity base post-2016.
In summary, the financial performance indicates a company that experienced volatility in profitability and shareholder equity during the period. Initial declines in equity suggest challenges or capital reductions, which were subsequently offset by a recovery phase. High but declining ROE is indicative of strong profitability that is moderating over time, possibly due to changes in business conditions or capital structure adjustments. The net income pattern supports the presence of cyclical influences on earnings with notable peaks that did not sustain continuous growth.
Return on Assets (ROA)
LyondellBasell Industries N.V., ROA calculation (quarterly data)
| Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to the Company shareholders | 1,002) | 815) | 690) | 1,113) | 1,654) | 1,231) | 1,894) | 1,057) | 1,131) | 797) | 763) | 952) | 1,091) | 1,030) | 795) | 1,185) | 1,330) | 1,166) | 793) | 1,258) | 1,178) | 945) | |||||||
| Total assets | 31,171) | 29,889) | 28,278) | 28,696) | 27,023) | 26,896) | 26,206) | 25,243) | 24,118) | 23,768) | 23,442) | 23,419) | 23,435) | 23,572) | 22,757) | 23,935) | 24,605) | 24,006) | 24,283) | 25,631) | 26,656) | 27,827) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | 11.61% | 14.29% | 16.58% | 20.53% | 21.60% | 19.75% | 18.62% | 14.85% | 15.10% | 15.16% | 16.36% | 16.52% | 17.50% | 18.41% | 19.67% | 18.69% | 18.48% | 18.31% | 17.19% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, 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), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q2 2019 Calculation
ROA = 100
× (Net income attributable to the Company shareholdersQ2 2019
+ Net income attributable to the Company shareholdersQ1 2019
+ Net income attributable to the Company shareholdersQ4 2018
+ Net income attributable to the Company shareholdersQ3 2018)
÷ Total assets
= 100 × (1,002 + 815 + 690 + 1,113)
÷ 31,171 = 11.61%
2 Click competitor name to see calculations.
The financial data over the analyzed quarters indicate several noteworthy trends in profitability, asset base evolution, and return on assets (ROA).
- Net Income
- The net income attributable to shareholders exhibits a fluctuating yet generally stable pattern throughout the periods. Initial quarters in 2014 show moderate growth, reaching a peak of 1,330 million US dollars in June 2015. Subsequently, there is a noticeable decline towards the end of 2015 and into early 2016. From 2016 to 2017, net income shows variability but maintains a level generally below the mid-2015 peak.
- In late 2017 and early 2018, there is a significant surge in net income, peaking at 1,894 million US dollars at the end of 2017, indicating improved profitability during this period. Following this, income again experiences volatility, with a downward trend toward mid-2019, declining to slightly above 800 million US dollars.
- Total Assets
- Total assets display a downward trend from March 2014 through December 2015, decreasing from 27,827 million US dollars to 22,757 million US dollars. Beginning in 2016, total assets stabilize and begin an upward trajectory, reaching over 31,000 million US dollars by June 2019. This growth suggests acquisitions, asset reinvestments, or other balance sheet expansions.
- Return on Assets (ROA)
- The ROA percentage, reported from late 2014 onwards, reveals an initially high and increasing trend, peaking at around 21.6% in the third quarter of 2018. This indicates efficient profit generation relative to asset size during this timeframe.
- However, from late 2018 through mid-2019, ROA shows a notable declining trend, decreasing to approximately 11.61%. This decline could be linked to the increase in total assets alongside fluctuating net income, suggesting diminishing returns on asset investment or increased asset base not fully converted into proportional profit gains.
In summary, the company experienced phases of strong profitability and asset growth, particularly noticeable at the end of 2017 and during 2018. Meanwhile, the subsequent decrease in ROA highlights a period where asset efficiency diminished, warranting attention to asset utilization strategies and profitability management going forward.