Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
LyondellBasell Industries N.V., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | LyondellBasell Industries N.V. inventory turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | LyondellBasell Industries N.V. receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | LyondellBasell Industries N.V. payables turnover ratio increased from 2016 to 2017 and from 2017 to 2018. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | LyondellBasell Industries N.V. working capital turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | LyondellBasell Industries N.V. number of days of inventory outstanding improved from 2016 to 2017 and from 2017 to 2018. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | LyondellBasell Industries N.V. number of days of receivables outstanding deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | LyondellBasell Industries N.V. operating cycle improved from 2016 to 2017 and from 2017 to 2018. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | LyondellBasell Industries N.V. number of days of payables outstanding decreased from 2016 to 2017 and from 2017 to 2018. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | LyondellBasell Industries N.V. cash conversion cycle improved from 2016 to 2017 and from 2017 to 2018. |
Inventory Turnover
LyondellBasell Industries N.V., inventory turnover 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) | ||||||
| Cost of sales | 32,529) | 28,059) | 23,191) | 25,683) | 38,939) | |
| Inventories | 4,515) | 4,217) | 3,809) | 4,051) | 4,517) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 7.20 | 6.65 | 6.09 | 6.34 | 8.62 | |
| Benchmarks | ||||||
| Inventory Turnover, 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
Inventory turnover = Cost of sales ÷ Inventories
= 32,529 ÷ 4,515 = 7.20
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | LyondellBasell Industries N.V. inventory turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
Receivables Turnover
LyondellBasell Industries N.V., receivables turnover 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) | ||||||
| Sales and other operating revenues | 39,004) | 34,484) | 29,183) | 32,735) | 45,608) | |
| Accounts receivable | 3,503) | 3,539) | 2,842) | 2,517) | 3,448) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 11.13 | 9.74 | 10.27 | 13.01 | 13.23 | |
| Benchmarks | ||||||
| Receivables Turnover, 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
Receivables turnover = Sales and other operating revenues ÷ Accounts receivable
= 39,004 ÷ 3,503 = 11.13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | LyondellBasell Industries N.V. receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Payables Turnover
LyondellBasell Industries N.V., payables turnover 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) | ||||||
| Cost of sales | 32,529) | 28,059) | 23,191) | 25,683) | 38,939) | |
| Accounts payable | 3,087) | 2,895) | 2,529) | 2,182) | 3,064) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 10.54 | 9.69 | 9.17 | 11.77 | 12.71 | |
| Benchmarks | ||||||
| Payables Turnover, 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
Payables turnover = Cost of sales ÷ Accounts payable
= 32,529 ÷ 3,087 = 10.54
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | LyondellBasell Industries N.V. payables turnover ratio increased from 2016 to 2017 and from 2017 to 2018. |
Working Capital Turnover
LyondellBasell Industries N.V., working capital turnover 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) | ||||||
| Current assets | 10,566) | 11,738) | 9,599) | 9,789) | 11,645) | |
| Less: Current liabilities | 5,513) | 4,777) | 4,540) | 4,349) | 5,437) | |
| Working capital | 5,053) | 6,961) | 5,059) | 5,440) | 6,208) | |
| Sales and other operating revenues | 39,004) | 34,484) | 29,183) | 32,735) | 45,608) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 7.72 | 4.95 | 5.77 | 6.02 | 7.35 | |
| Benchmarks | ||||||
| Working Capital Turnover, 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
Working capital turnover = Sales and other operating revenues ÷ Working capital
= 39,004 ÷ 5,053 = 7.72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | LyondellBasell Industries N.V. working capital turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Average Inventory Processing Period
LyondellBasell Industries N.V., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 7.20 | 6.65 | 6.09 | 6.34 | 8.62 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 51 | 55 | 60 | 58 | 42 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 7.20 = 51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | LyondellBasell Industries N.V. number of days of inventory outstanding improved from 2016 to 2017 and from 2017 to 2018. |
Average Receivable Collection Period
LyondellBasell Industries N.V., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 11.13 | 9.74 | 10.27 | 13.01 | 13.23 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 33 | 37 | 36 | 28 | 28 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.13 = 33
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | LyondellBasell Industries N.V. number of days of receivables outstanding deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Operating Cycle
LyondellBasell Industries N.V., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 51 | 55 | 60 | 58 | 42 | |
| Average receivable collection period | 33 | 37 | 36 | 28 | 28 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 84 | 92 | 96 | 86 | 70 | |
| Benchmarks | ||||||
| Operating Cycle, 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 cycle = Average inventory processing period + Average receivable collection period
= 51 + 33 = 84
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | LyondellBasell Industries N.V. operating cycle improved from 2016 to 2017 and from 2017 to 2018. |
Average Payables Payment Period
LyondellBasell Industries N.V., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 10.54 | 9.69 | 9.17 | 11.77 | 12.71 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 35 | 38 | 40 | 31 | 29 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.54 = 35
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | LyondellBasell Industries N.V. number of days of payables outstanding decreased from 2016 to 2017 and from 2017 to 2018. |
Cash Conversion Cycle
LyondellBasell Industries N.V., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 51 | 55 | 60 | 58 | 42 | |
| Average receivable collection period | 33 | 37 | 36 | 28 | 28 | |
| Average payables payment period | 35 | 38 | 40 | 31 | 29 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 49 | 54 | 56 | 55 | 41 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, 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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 51 + 33 – 35 = 49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | LyondellBasell Industries N.V. cash conversion cycle improved from 2016 to 2017 and from 2017 to 2018. |