Westlake Chemical Corporation (WLK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.68% | 25.79% | 29.67% | 13.63% | 15.52% |
| Operating profit margin | 5.81% | 19.31% | 23.77% | 5.72% | 8.08% |
| Pretax margin | 5.24% | 18.34% | 22.26% | 3.84% | 6.52% |
| Net profit margin | 3.82% | 14.23% | 17.11% | 4.40% | 5.19% |
Westlake Corporation's profitability ratios have shown variability over the past five years. The gross profit margin has fluctuated, with a notable decrease in 2020 followed by a gradual increase thereafter. This suggests that the company's ability to generate profit from its core operations has been volatile.
Similarly, the operating profit margin also displays some volatility, particularly with a significant drop in 2020. However, there has been an upward trend in recent years, indicating potential improvements in operational efficiency.
The pretax margin follows a similar pattern, with fluctuations in profitability over the years. Despite experiencing a decline in 2020, there has been a notable recovery in the following years, showcasing the company's ability to manage pre-tax earnings better.
The net profit margin, reflecting the company's bottom line profitability, also shows variability, with a significant increase in 2022 followed by a slight decrease in 2023. This indicates that while the company has been able to control costs and generate profits more efficiently in recent years, there are still fluctuations in its overall profitability.
Overall, Westlake Corporation's profitability ratios suggest a mixed performance, with some improvements in recent years but also ongoing challenges in maintaining consistent levels of profitability. Continued monitoring and analysis of these ratios will be essential to assess the company's financial health accurately.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.47% | 14.84% | 15.17% | 3.10% | 4.95% |
| Return on assets (ROA) | 2.28% | 10.93% | 10.92% | 2.39% | 3.17% |
| Return on total capital | 5.54% | 20.75% | 21.75% | 4.47% | 7.02% |
| Return on equity (ROE) | 4.68% | 22.63% | 25.33% | 5.46% | 7.18% |
Westlake Corporation's profitability ratios show varying levels of performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated significantly, ranging from 3.36% in 2020 to 15.28% in 2021. The ratio then decreased to 5.86% in 2023. This ratio indicates the efficiency of the company in generating operating profits from its assets.
2. Return on assets (ROA) also fluctuated, with the highest value of 10.88% in 2022 and the lowest of 2.26% in 2023. This ratio provides insight into the overall profitability of the company relative to its total assets.
3. Return on total capital shows a similar pattern, with the highest value of 21.48% in 2022 and the lowest of 4.84% in 2023. This ratio measures the profitability of the company in relation to both debt and equity capital invested.
4. Return on equity (ROE) peaked at 25.20% in 2021 but decreased to 4.65% in 2023. This ratio indicates the return generated on shareholders' equity.
Overall, Westlake Corporation's profitability ratios demonstrate a mix of strong and weak performance over the years, highlighting the company's ability to generate profits from its assets and capital, but also showing potential fluctuations in its profitability.