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).
The financial margins of the company exhibit a noticeable declining trend over the examined periods. The gross profit margin, initially at 16.22%, rose to a peak of approximately 21.8% in early 2016 but subsequently declined steadily to 15.31% by mid-2019. Similarly, the operating profit margin followed a comparable trajectory, increasing from 14% to a peak near 18.88%, then declining to 11.68% over the same timeframe. The net profit margin showed consistent growth from 10.3% in early 2015, reaching a high of 15.51% in mid-2018, before experience a sharp decline to below 10% by mid-2019. This suggests increasing pressures on profitability in recent periods despite earlier improvements.
Regarding efficiency measures, both return on equity (ROE) and return on assets (ROA) show a downward trend after reaching significant peaks. ROE started at a very high level of 58.77% in early 2015, rising to a peak near 68.41% in early 2016, then declining sharply to 33.77% by mid-2019. ROA similarly peaked around 21.6% in mid-2018 before decreasing steadily to 11.61% by mid-2019. This decline in returns indicates diminishing effectiveness in generating profits from equity and asset bases over the later periods.
Overall, the data reveal an initial phase of improving profitability and return efficiency followed by a sustained and marked decline in all key profitability and efficiency ratios from 2017 onward. The margins and returns do not only decrease but do so consistently across quarters, pointing to potential operational challenges, market pressures, or other factors that have affected financial performance negatively in the recent years analyzed.
- Gross Profit Margin (%)
- Rose from 16.22% in early 2015 to a peak of 21.8% in early 2016, then steadily declined to 15.31% by mid-2019.
- Operating Profit Margin (%)
- Increased from 14% to roughly 18.88% in early 2016, followed by a gradual fall to 11.68% by mid-2019.
- Net Profit Margin (%)
- Grew consistently to 15.51% by mid-2018, before descending sharply to 9.82% by mid-2019.
- Return on Equity (ROE) (%)
- Started at 58.77%, peaked near 68.41% in early 2016, then declined sharply to 33.77% by mid-2019.
- Return on Assets (ROA) (%)
- Peaked at 21.6% in mid-2018, followed by a reduction to 11.61% by mid-2019.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| 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) | ||||||
| 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% | ||||||
| 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).
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.
- Sales and Revenue Trends
- Sales and other operating revenues exhibit notable fluctuations across the observed periods. Initially, there is a declining trend from early 2015 through mid-2016, with revenues dropping from a peak of over 9,000 million USD in the second quarter of 2015 to approximately 6,700 million USD by the first quarter of 2016. Subsequently, the revenues steadily recover, reaching a high point of around 10,200 million USD in mid-2018, before experiencing another moderate decline towards mid-2019, stabilizing near 8,800 to 9,000 million USD.
- Gross Profit Analysis
- Gross profit values mirror the revenue movement but with a less pronounced recovery towards the end of the period. The gross profit peaks at about 2,100 million USD in mid-2015, following which it declines to around 1,300 million USD by late 2016. After this trough, gross profit increases again to near 1,900 million USD in mid-2018 but then demonstrates a significant decline towards early 2019, dropping below 1,200 million USD before showing a slight upturn by mid-2019.
- Gross Profit Margin Trends
- The gross profit margin reveals a gradual downtrend over the entire period. It starts at approximately 16.2% in early 2015, climbing slightly to a peak of about 21.8% in early 2016. Following this peak, the margin consistently declines, falling to around 15.3% by mid-2019. This decreasing margin indicates that despite some recovery in revenues and gross profit, profitability relative to sales diminishes over time, suggesting either increased cost pressures or pricing challenges.
- Overall Insights
- The data points to a cycle of contraction and partial recovery in sales and gross profit between 2015 and 2019, with peak financial performance occurring in mid-2015 and mid-2018. However, the gross profit margin trend signals weakening efficiency or profitability over time. This suggests that while the company experienced growth phases in revenue and absolute profit, it faced increasing challenges in maintaining profit levels proportionate to sales, possibly due to rising costs or adverse market conditions. The decline in margin towards the end of the period warrants attention for future operational improvements or strategic adjustments.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| 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) | ||||||
| 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% | ||||||
| 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).
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.
- Operating Income
- The operating income experienced fluctuations throughout the observed periods. Starting at $1,575 million in the first quarter of 2015, it reached a peak of $1,845 million in the second quarter of 2015. A decline followed through the end of 2015, reaching $1,052 million in the last quarter of that year. In 2016, values remained relatively stable but showed a slight downward trend in the latter half of the year, with operating income ending at $1,048 million in the final quarter. The year 2017 saw recovery and growth, with peaks near $1,577 million mid-year, followed by a slight dip toward the year's end. In 2018, operating income again showed variability, rising early in the year to $1,626 million and then dropping significantly to $794 million by the end of the year. In the first half of 2019, operating income showed signs of improvement, increasing from $1,017 million to $1,177 million, indicating a rebound from the prior year’s decline.
- Sales and Other Operating Revenues
- Sales and other operating revenues showed a general upward trend from 2015 into 2018, increasing from $8,185 million in the first quarter of 2015 to a peak of $10,206 million in the second quarter of 2018. After reaching this high point, revenues experienced a slight decline in the latter part of 2018 and into 2019, decreasing to $8,778 million by the second quarter of 2019. Despite some quarterly variability, the overall trajectory across the five-year span was one of growth, reflecting expanding sales volume or pricing improvements during most of the period before tapering off in early 2019.
- Operating Profit Margin
- The operating profit margin demonstrated a gradual decline over the period. Initially at 14% in the first quarter of 2015, it increased to a high of nearly 18.9% by the first quarter of 2016, indicating strong profitability relative to sales early in the period. However, after this peak, the margin trended downward consistently, falling to 11.68% by mid-2019. This decreasing margin suggests rising costs, pricing pressures, or a less favorable product mix, which diminished profitability despite sales growth, particularly notable from 2017 onward.
- Summary of Trends
- The company experienced notable fluctuations in operating income that somewhat tracked sales volumes but were also influenced by margin compression. Sales revenues generally increased over the observed timeframe, peaking in mid-2018 before declining slightly. However, the consistent erosion of operating profit margins indicates that increased revenues did not translate proportionally into operating income. The shrinking margins highlight challenges in cost control or pricing power that affected overall profitability. The early part of 2019 showed some recovery in operating income, but margins remained at their lowest levels in the examined period, suggesting ongoing operational or market difficulties.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| 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) | ||||||
| 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% | ||||||
| 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).
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 Company Shareholders
- The net income demonstrates considerable volatility over the observed periods, with fluctuations occurring both within and between years. Initially, net income remained at a relatively high level during 2015, peaking above 1300 million US dollars in the second quarter before declining toward the end of the year. Throughout 2016, net income showed a gradual downward trend, touching a low point in the final quarter. In 2017, a recovery phase was evident, with net income rising substantially in the last quarter. The trend continued with some variation in 2018, including a peak in mid-year, followed by a significant drop in the final quarter. The first two quarters of 2019 indicate a slight upward movement after the earlier decline.
- Sales and Other Operating Revenues
- Sales and operating revenues display a pattern of moderate growth with seasonal variability. In 2015, revenues started relatively high but decreased steadily into the year's end. The subsequent years show a gradual increase, with revenue reaching record highs in 2018, especially during the mid-year and last quarter. Despite this peak, the revenues declined somewhat in early 2019 but remained close to previous years' upper range, suggesting a generally stable and increasing revenue base over the long term.
- Net Profit Margin
- The net profit margin exhibits an overall upward trend from 2015 through 2018, indicating improved profitability relative to revenues. Margins increased from about 10.3% to a high exceeding 15% during 2018, reflecting efficiency gains, cost control, or favorable market conditions. However, this trend reverses in 2019 where margins decline sharply, falling below 10% by the second quarter. This reduction in profitability, despite relatively stable sales, suggests rising costs, pricing pressures, or other operational challenges during the latest period analyzed.
- General Observations
- There is a discernible correlation between net income and profit margin trends, with both generally moving upward until 2018 and declining in 2019. Revenue trends do not fully parallel net income changes, indicating fluctuations in costs or other income/expense items affecting profitability. The data suggest the company experienced strong performance improvements culminating in 2018, followed by a period of margin contraction and lower net earnings in early 2019, warranting further investigation into underlying causes.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| 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) | ||||||
| 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% | ||||||
| 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).
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 financial performance over the analyzed periods demonstrates variability in key metrics, including net income attributable to shareholders, total stockholders’ equity, and return on equity (ROE). These indicators provide insight into profitability, asset base, and efficiency in generating returns.
- Net Income
- Net income attributable to the company's shareholders shows fluctuations across quarters. From the beginning of the period, net income was relatively strong, peaking at 1,330 million USD in the second quarter of 2015 before experiencing steady declines through the end of 2016. A notable recovery occurs in 2017, with the last quarter reaching a high of 1,894 million USD. Subsequently, net income declines again through 2018 and into mid-2019, reflecting increased volatility and potential operational or market challenges during these intervals.
- Total Stockholders’ Equity
- The total company share of stockholders’ equity demonstrates a generally upward trajectory over the examined timeframe. Starting at approximately 7.5 billion USD in early 2015, equity shows moderate declines through 2016 but resumes growth from 2017 onwards, reaching over 10.7 billion USD by mid-2019. This gradual increase suggests accumulation of retained earnings or issuance of equity, reinforcing the company's capital base despite fluctuations in earnings.
- Return on Equity (ROE)
- ROE trends present a clear decline over time. Initially, ROE values are relatively high, exceeding 55% in early 2015 and peaking above 68% by the end of 2015. From 2016 onward, ROE decreases consistently, dropping to approximately 33.8% by mid-2019. This downward trend may indicate diminishing profitability relative to equity or increased equity base without proportional increases in net income, highlighting potential concerns about efficiency in utilizing shareholders’ funds.
Overall, the data reflect periods of strong profitability and equity growth, punctuated by significant earnings volatility and a sustained decline in return on equity. The increase in equity base alongside declining ROE suggests the company might be experiencing challenges in maintaining high profitability levels even as its capital structure strengthens.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| 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) | ||||||
| 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% | ||||||
| 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).
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 analysis of the quarterly financial data reveals several key trends in the company's profitability, asset base, and return on assets over the examined periods.
- Net Income Attributable to Company Shareholders
- The net income demonstrates notable variability over the quarters. From early 2015 to the end of 2016, net income generally fluctuates within a range between approximately $700 million and $1.3 billion, with a peak in the second quarter of 2015. In 2017, net income shows a recovery and stabilization trend, peaking sharply in the fourth quarter of 2017 at $1.894 billion, indicating strong performance during that quarter. Subsequently, net income remains elevated compared to earlier years but shows some quarterly variation through mid-2019, with a general downward trend towards the second quarter of 2019 compared to the peak quarters of 2017 and 2018.
- Total Assets
- The total assets show a consistent upward trajectory throughout the reported periods. Starting at approximately $24 billion at the beginning of 2015, the asset base increases steadily each quarter, reaching over $31 billion by the second quarter of 2019. This growth suggests ongoing asset accumulation or investment activities, contributing to the expansion of the company's financial footprint over time.
- Return on Assets (ROA)
- ROA exhibits a declining trend overall despite some intermittent recoveries. Initially, the ROA remains high, around 18% to 19% in 2015 and early 2016, but experiences a gradual decrease to values near 14% to 16% during 2016 and 2017. A significant improvement occurs at the end of 2017 and into 2018, with ROA peaking above 21%, reflecting enhanced profitability relative to the asset base during this period. However, following this peak, ROA declines steadily through 2018 and into 2019, reaching approximately 11.6% by mid-2019. This downward trend may indicate diminishing efficiency in asset utilization or profitability challenges relative to the growing asset base in the later periods.
In summary, while net income has experienced fluctuations with substantial peaks, total assets have shown continuous growth. Return on assets, after a period of strength and improvement, has trended downward, suggesting that the recent gains in asset size have not proportionally translated into higher profitability. Monitoring the relationship between asset growth and net income will be critical for assessing the company's future operational efficiency.