Stock Analysis on Net
Stock Analysis on Net

LyondellBasell Industries N.V. (NYSE:LYB)

This company has been moved to the archive! The financial data has not been updated since August 2, 2019.

Analysis of Income Taxes

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Income Tax Expense (Benefit)

LyondellBasell Industries N.V., income tax expense (benefit), continuing operations

US$ in millions

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12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
U.S. federal (89) 543 421 1,009 985
Non-U.S. 404 595 557 468 277
State 38 47 51 72 101
Current 353 1,185 1,029 1,549 1,363
U.S. federal 197 (637) 339 66 122
Non-U.S. 48 22 20 104 50
State 15 28 (2) 11 5
Deferred 260 (587) 357 181 177
Provision for income taxes 613 598 1,386 1,730 1,540

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. LyondellBasell Industries N.V. current increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. LyondellBasell Industries N.V. deferred decreased from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. LyondellBasell Industries N.V. provision for income taxes decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

Components of Deferred Tax Assets and Liabilities

LyondellBasell Industries N.V., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Tax attributes 180 196 255 322 409
Employee benefit plans 334 315 404 406 468
Other assets 76 97 72 73 93
Deferred tax assets 590 608 731 801 970
Deferred tax asset valuation allowances (120) (96) (96) (125) (134)
Net deferred tax assets 470 512 635 676 836
Accelerated tax depreciation (1,809) (1,523) (1,910) (1,519) (1,464)
Investment in joint venture partnerships (147) (214) (304) (300) (276)
Intangible assets (151) (48) (140) (215) (264)
Inventory (285) (266) (379) (440) (528)
Other liabilities (22) (26) (41) (124) (58)
Deferred tax liabilities (2,414) (2,077) (2,774) (2,598) (2,590)
Net deferred tax assets (liabilities) (1,944) (1,565) (2,139) (1,922) (1,754)

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. LyondellBasell Industries N.V. deferred tax assets decreased from 2016 to 2017 and from 2017 to 2018.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. LyondellBasell Industries N.V. net deferred tax assets decreased from 2016 to 2017 and from 2017 to 2018.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. LyondellBasell Industries N.V. net deferred tax assets (liabilities) increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.

Deferred Tax Assets and Liabilities, Classification

LyondellBasell Industries N.V., deferred tax assets and liabilities, classification

US$ in millions

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Deferred tax assets, current — — — — 67
Deferred tax assets, long-term 31 90 192 205 271
Deferred tax liability, current — — — — 469
Deferred tax liability, long-term 1,975 1,655 2,331 2,127 1,623

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).

Item Description The company
Deferred tax assets, long-term Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. LyondellBasell Industries N.V. deferred tax assets, long-term decreased from 2016 to 2017 and from 2017 to 2018.
Deferred tax liability, long-term Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. LyondellBasell Industries N.V. deferred tax liability, long-term decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

Adjustments to Financial Statements: Removal of Deferred Taxes

LyondellBasell Industries N.V., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Current Assets
Current assets (as reported) 10,566 11,738 9,599 9,789 11,645
Less: Current deferred tax assets, net — — — — 67
Current assets (adjusted) 10,566 11,738 9,599 9,789 11,578
Adjustment to Total Assets
Total assets (as reported) 28,278 26,206 23,442 22,757 24,283
Less: Current deferred tax assets, net — — — — 67
Less: Noncurrent deferred tax assets, net 31 90 192 205 271
Total assets (adjusted) 28,247 26,116 23,250 22,552 23,945
Adjustment to Current Liabilities
Current liabilities (as reported) 5,513 4,777 4,540 4,349 5,437
Less: Current deferred tax liabilities, net — — — — 469
Current liabilities (adjusted) 5,513 4,777 4,540 4,349 4,968
Adjustment to Total Liabilities
Total liabilities (as reported) 17,882 17,256 17,369 16,183 15,939
Less: Current deferred tax liabilities, net — — — — 469
Less: Noncurrent deferred tax liabilities, net 1,975 1,655 2,331 2,127 1,623
Total liabilities (adjusted) 15,907 15,601 15,038 14,056 13,847
Adjustment to Total Company Share Of Stockholders’ Equity
Total Company share of stockholders’ equity (as reported) 10,257 8,949 6,048 6,550 8,314
Less: Net deferred tax assets (liabilities) (1,944) (1,565) (2,139) (1,922) (1,754)
Total Company share of stockholders’ equity (adjusted) 12,201 10,514 8,187 8,472 10,068
Adjustment to Net Income Attributable To The Company Shareholders
Net income attributable to the Company shareholders (as reported) 4,688 4,879 3,836 4,476 4,174
Add: Deferred income tax expense (benefit) 260 (587) 357 181 177
Net income attributable to the Company shareholders (adjusted) 4,948 4,292 4,193 4,657 4,351

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).

LyondellBasell Industries N.V., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

LyondellBasell Industries N.V., adjusted financial ratios

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current Ratio
Reported current ratio 1.92 2.46 2.11 2.25 2.14
Adjusted current ratio 1.92 2.46 2.11 2.25 2.33
Net Profit Margin
Reported net profit margin 12.02% 14.15% 13.14% 13.67% 9.15%
Adjusted net profit margin 12.69% 12.45% 14.37% 14.23% 9.54%
Total Asset Turnover
Reported total asset turnover 1.38 1.32 1.24 1.44 1.88
Adjusted total asset turnover 1.38 1.32 1.26 1.45 1.90
Financial Leverage
Reported financial leverage 2.76 2.93 3.88 3.47 2.92
Adjusted financial leverage 2.32 2.48 2.84 2.66 2.38
Return on Equity (ROE)
Reported ROE 45.71% 54.52% 63.43% 68.34% 50.20%
Adjusted ROE 40.55% 40.82% 51.22% 54.97% 43.22%
Return on Assets (ROA)
Reported ROA 16.58% 18.62% 16.36% 19.67% 17.19%
Adjusted ROA 17.52% 16.43% 18.03% 20.65% 18.17%

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).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. LyondellBasell Industries N.V. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. LyondellBasell Industries N.V. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. LyondellBasell Industries N.V. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 LyondellBasell Industries N.V. adjusted financial leverage ratio decreased from 2016 to 2017 and from 2017 to 2018.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. LyondellBasell Industries N.V. adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. LyondellBasell Industries N.V. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

LyondellBasell Industries N.V., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Current assets 10,566 11,738 9,599 9,789 11,645
Current liabilities 5,513 4,777 4,540 4,349 5,437
Liquidity Ratio
Current ratio1 1.92 2.46 2.11 2.25 2.14
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 10,566 11,738 9,599 9,789 11,578
Adjusted current liabilities 5,513 4,777 4,540 4,349 4,968
Liquidity Ratio
Adjusted current ratio2 1.92 2.46 2.11 2.25 2.33

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).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 10,566 ÷ 5,513 = 1.92

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 10,566 ÷ 5,513 = 1.92

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. LyondellBasell Industries N.V. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Net Profit Margin

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to the Company shareholders 4,948 4,292 4,193 4,657 4,351
Sales and other operating revenues 39,004 34,484 29,183 32,735 45,608
Profitability Ratio
Adjusted net profit margin2 12.69% 12.45% 14.37% 14.23% 9.54%

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).

2018 Calculations

1 Net profit margin = 100 × Net income attributable to the Company shareholders ÷ Sales and other operating revenues
= 100 × 4,688 ÷ 39,004 = 12.02%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to the Company shareholders ÷ Sales and other operating revenues
= 100 × 4,948 ÷ 39,004 = 12.69%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. LyondellBasell Industries N.V. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Adjusted Total Asset Turnover

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 39,004 34,484 29,183 32,735 45,608
Total assets 28,278 26,206 23,442 22,757 24,283
Activity Ratio
Total asset turnover1 1.38 1.32 1.24 1.44 1.88
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 39,004 34,484 29,183 32,735 45,608
Adjusted total assets 28,247 26,116 23,250 22,552 23,945
Activity Ratio
Adjusted total asset turnover2 1.38 1.32 1.26 1.45 1.90

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).

2018 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 39,004 ÷ 28,278 = 1.38

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 39,004 ÷ 28,247 = 1.38

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. LyondellBasell Industries N.V. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Adjusted Financial Leverage

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets 28,278 26,206 23,442 22,757 24,283
Total Company share of stockholders’ equity 10,257 8,949 6,048 6,550 8,314
Solvency Ratio
Financial leverage1 2.76 2.93 3.88 3.47 2.92
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 28,247 26,116 23,250 22,552 23,945
Adjusted total Company share of stockholders’ equity 12,201 10,514 8,187 8,472 10,068
Solvency Ratio
Adjusted financial leverage2 2.32 2.48 2.84 2.66 2.38

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).

2018 Calculations

1 Financial leverage = Total assets ÷ Total Company share of stockholders’ equity
= 28,278 ÷ 10,257 = 2.76

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Company share of stockholders’ equity
= 28,247 ÷ 12,201 = 2.32

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 LyondellBasell Industries N.V. adjusted financial leverage ratio decreased from 2016 to 2017 and from 2017 to 2018.

Adjusted Return on Equity (ROE)

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to the Company shareholders 4,948 4,292 4,193 4,657 4,351
Adjusted total Company share of stockholders’ equity 12,201 10,514 8,187 8,472 10,068
Profitability Ratio
Adjusted ROE2 40.55% 40.82% 51.22% 54.97% 43.22%

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).

2018 Calculations

1 ROE = 100 × Net income attributable to the Company shareholders ÷ Total Company share of stockholders’ equity
= 100 × 4,688 ÷ 10,257 = 45.71%

2 Adjusted ROE = 100 × Adjusted net income attributable to the Company shareholders ÷ Adjusted total Company share of stockholders’ equity
= 100 × 4,948 ÷ 12,201 = 40.55%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. LyondellBasell Industries N.V. adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Return on Assets (ROA)

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to the Company shareholders 4,948 4,292 4,193 4,657 4,351
Adjusted total assets 28,247 26,116 23,250 22,552 23,945
Profitability Ratio
Adjusted ROA2 17.52% 16.43% 18.03% 20.65% 18.17%

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).

2018 Calculations

1 ROA = 100 × Net income attributable to the Company shareholders ÷ Total assets
= 100 × 4,688 ÷ 28,278 = 16.58%

2 Adjusted ROA = 100 × Adjusted net income attributable to the Company shareholders ÷ Adjusted total assets
= 100 × 4,948 ÷ 28,247 = 17.52%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. LyondellBasell Industries N.V. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.