Westlake Chemical Corporation (WLK)
Net profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 479,000 | 1,208,000 | 1,324,000 | 1,885,000 | 2,247,000 | 2,659,000 | 2,865,000 | 2,529,000 | 2,015,000 | 1,484,000 | 934,000 | 427,000 | 330,000 | 289,000 | 390,000 | 494,000 | 421,000 | 472,000 | 622,000 | 781,000 |
| Revenue (ttm) | US$ in thousands | 12,548,000 | 13,021,000 | 13,862,000 | 15,094,000 | 15,794,000 | 16,002,000 | 15,101,000 | 13,477,000 | 11,778,000 | 10,236,000 | 9,079,000 | 7,929,000 | 7,504,000 | 7,422,000 | 7,590,000 | 8,025,000 | 8,118,000 | 8,230,000 | 8,419,000 | 8,510,000 |
| Net profit margin | 3.82% | 9.28% | 9.55% | 12.49% | 14.23% | 16.62% | 18.97% | 18.77% | 17.11% | 14.50% | 10.29% | 5.39% | 4.40% | 3.89% | 5.14% | 6.16% | 5.19% | 5.74% | 7.39% | 9.18% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $479,000K ÷ $12,548,000K
= 3.82%
The net profit margin of Westlake Corporation has shown a general downward trend over the past eight quarters. The net profit margin decreased from 18.91% in Q2 2022 to 3.79% in Q4 2023. This decline indicates that the company's profitability relative to its revenue has been diminishing. It is important to further investigate the reasons behind this decrease in net profit margin, as it could be attributed to various factors such as increasing costs, declining revenue, or changes in the company's pricing strategy. A declining net profit margin may warrant a closer examination of the company's financial performance and strategies to address the downward trend in profitability.
Peer comparison
Dec 31, 2023