Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
LyondellBasell Industries N.V., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | LyondellBasell Industries N.V. debt to equity ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | LyondellBasell Industries N.V. debt to capital ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | LyondellBasell Industries N.V. debt to assets ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | LyondellBasell Industries N.V. financial leverage ratio decreased from 2016 to 2017 and from 2017 to 2018. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | LyondellBasell Industries N.V. interest coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | LyondellBasell Industries N.V. fixed charge coverage ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |
Debt to Equity
LyondellBasell Industries N.V., debt to equity 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 maturities of long-term debt | 5) | 2) | 2) | 4) | 4) | |
| Short-term debt | 885) | 68) | 594) | 353) | 346) | |
| Long-term debt, excluding current maturities | 8,497) | 8,549) | 8,385) | 7,671) | 6,757) | |
| Total debt | 9,387) | 8,619) | 8,981) | 8,028) | 7,107) | |
| Total Company share of stockholders’ equity | 10,257) | 8,949) | 6,048) | 6,550) | 8,314) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.92 | 0.96 | 1.48 | 1.23 | 0.85 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
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
Debt to equity = Total debt ÷ Total Company share of stockholders’ equity
= 9,387 ÷ 10,257 = 0.92
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | LyondellBasell Industries N.V. debt to equity ratio improved from 2016 to 2017 and from 2017 to 2018. |
Debt to Capital
LyondellBasell Industries N.V., debt to capital 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 maturities of long-term debt | 5) | 2) | 2) | 4) | 4) | |
| Short-term debt | 885) | 68) | 594) | 353) | 346) | |
| Long-term debt, excluding current maturities | 8,497) | 8,549) | 8,385) | 7,671) | 6,757) | |
| Total debt | 9,387) | 8,619) | 8,981) | 8,028) | 7,107) | |
| Total Company share of stockholders’ equity | 10,257) | 8,949) | 6,048) | 6,550) | 8,314) | |
| Total capital | 19,644) | 17,568) | 15,029) | 14,578) | 15,421) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.48 | 0.49 | 0.60 | 0.55 | 0.46 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 9,387 ÷ 19,644 = 0.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | LyondellBasell Industries N.V. debt to capital ratio improved from 2016 to 2017 and from 2017 to 2018. |
Debt to Assets
LyondellBasell Industries N.V., debt to assets 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 maturities of long-term debt | 5) | 2) | 2) | 4) | 4) | |
| Short-term debt | 885) | 68) | 594) | 353) | 346) | |
| Long-term debt, excluding current maturities | 8,497) | 8,549) | 8,385) | 7,671) | 6,757) | |
| Total debt | 9,387) | 8,619) | 8,981) | 8,028) | 7,107) | |
| Total assets | 28,278) | 26,206) | 23,442) | 22,757) | 24,283) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.33 | 0.33 | 0.38 | 0.35 | 0.29 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 9,387 ÷ 28,278 = 0.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | LyondellBasell Industries N.V. debt to assets ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018. |
Financial Leverage
LyondellBasell Industries N.V., financial leverage 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) | ||||||
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
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
Financial leverage = Total assets ÷ Total Company share of stockholders’ equity
= 28,278 ÷ 10,257 = 2.76
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | LyondellBasell Industries N.V. financial leverage ratio decreased from 2016 to 2017 and from 2017 to 2018. |
Interest Coverage
LyondellBasell Industries N.V., interest coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to the Company shareholders | 4,688) | 4,879) | 3,836) | 4,476) | 4,174) | |
| Add: Net income attributable to noncontrolling interest | 2) | (2) | 1) | (2) | (6) | |
| Less: Loss from discontinued operations, net of tax | (8) | (18) | (10) | (5) | (4) | |
| Add: Income tax expense | 613) | 598) | 1,386) | 1,730) | 1,540) | |
| Add: Interest expense | 360) | 491) | 322) | 310) | 352) | |
| Earnings before interest and tax (EBIT) | 5,671) | 5,984) | 5,555) | 6,519) | 6,064) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 15.75 | 12.19 | 17.25 | 21.03 | 17.23 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 5,671 ÷ 360 = 15.75
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | LyondellBasell Industries N.V. interest coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Fixed Charge Coverage
LyondellBasell Industries N.V., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to the Company shareholders | 4,688) | 4,879) | 3,836) | 4,476) | 4,174) | |
| Add: Net income attributable to noncontrolling interest | 2) | (2) | 1) | (2) | (6) | |
| Less: Loss from discontinued operations, net of tax | (8) | (18) | (10) | (5) | (4) | |
| Add: Income tax expense | 613) | 598) | 1,386) | 1,730) | 1,540) | |
| Add: Interest expense | 360) | 491) | 322) | 310) | 352) | |
| Earnings before interest and tax (EBIT) | 5,671) | 5,984) | 5,555) | 6,519) | 6,064) | |
| Add: Rental expense | 496) | 440) | 426) | 422) | 412) | |
| Earnings before fixed charges and tax | 6,167) | 6,424) | 5,981) | 6,941) | 6,476) | |
| Interest expense | 360) | 491) | 322) | 310) | 352) | |
| Rental expense | 496) | 440) | 426) | 422) | 412) | |
| Fixed charges | 856) | 931) | 748) | 732) | 764) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 7.20 | 6.90 | 8.00 | 9.48 | 8.48 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,167 ÷ 856 = 7.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | LyondellBasell Industries N.V. fixed charge coverage ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |