Westlake Chemical Corporation (WLK)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 479,000 | 2,247,000 | 2,015,000 | 330,000 | 421,000 |
| Revenue | US$ in thousands | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 | 8,118,000 |
| Net profit margin | 3.82% | 14.23% | 17.11% | 4.40% | 5.19% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $479,000K ÷ $12,548,000K
= 3.82%
Westlake Corporation's net profit margin has shown variability over the past five years. In 2023, the net profit margin was 3.79%, a significant decrease from the previous year's margin of 14.15% in 2022. This indicates a substantial decline in the company's profitability compared to the previous year.
Looking back further, the net profit margin was at its peak in 2021 at 17.02%, displaying a strong performance in profitability. However, in 2020 and 2019, the net profit margins were 4.38% and 5.16%, respectively, reflecting lower profitability levels compared to the peak year of 2021.
Overall, the fluctuation in Westlake Corporation's net profit margin over the years suggests varying levels of efficiency in managing costs and generating profits. It is important for the company to analyze the factors contributing to these fluctuations and implement strategies to maintain consistent and healthy profit margins in the future.
Peer comparison
Dec 31, 2023