Westlake Chemical Corporation (WLK)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 602,000 | 479,000 | 2,247,000 | 2,015,000 | 330,000 |
| Revenue | US$ in thousands | 12,142,000 | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 |
| Net profit margin | 4.96% | 3.82% | 14.23% | 17.11% | 4.40% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $602,000K ÷ $12,142,000K
= 4.96%
The net profit margin of Westlake Chemical Corporation has shown some fluctuations over the years based on the provided data. As of December 31, 2020, the net profit margin stood at 4.40%, indicating that 4.40% of the company's revenues translated into profit after accounting for all expenses.
In the following year, December 31, 2021, there was a notable increase in the net profit margin to 17.11%. This significant improvement suggests that the company was able to control costs effectively or increase revenues substantially compared to the previous period.
Subsequently, by December 31, 2022, the net profit margin slightly decreased to 14.23%. While still relatively high, this decline may indicate a slight decrease in profitability efficiency compared to the previous year.
In December 31, 2023, there was a notable decrease in the net profit margin to 3.82%. This decline from the previous year could be a result of various factors such as increased operating expenses, lower sales volumes, or other financial challenges faced by the company during that period.
By December 31, 2024, the net profit margin recovered slightly to 4.96%. The modest recovery may indicate some improvement in the company's profitability compared to the previous year, although it remains below the levels seen in 2021 and 2022.
Overall, the fluctuations in Westlake Chemical Corporation's net profit margin over the years suggest varying levels of efficiency in generating profits from its revenue streams. It would be essential for the company to continue monitoring and managing its costs effectively to ensure long-term financial sustainability and growth.
Peer comparison
Dec 31, 2024