Westlake Chemical Corporation (WLK)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 875,000 | 729,000 | 3,050,000 | 2,800,000 | 429,000 |
| Revenue | US$ in thousands | 12,142,000 | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 |
| Operating profit margin | 7.21% | 5.81% | 19.31% | 23.77% | 5.72% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $875,000K ÷ $12,142,000K
= 7.21%
The operating profit margin of Westlake Chemical Corporation has shown significant fluctuations over the past five years.
In December 2020, the operating profit margin was 5.72%, indicating that for every dollar of revenue generated, the company retained $0.0572 as operating profit.
There was a substantial improvement in December 2021, with the operating profit margin increasing to 23.77%. This sharp increase suggests that the company managed its operating expenses more efficiently, resulting in higher profitability relative to its revenue.
However, the margin declined slightly in December 2022 to 19.31%. Despite the decrease, the operating profit margin remained relatively strong compared to historical levels.
In December 2023, there was a notable drop in the operating profit margin to 5.81%, signaling a decrease in profitability. This decline could be attributed to various factors such as increased operating expenses or lower revenue generation.
The margin recovered slightly in December 2024, rising to 7.21%, but it was still below the peak observed in 2021. The fluctuating trend in the operating profit margin indicates the company's varying ability to control costs and generate profits from its core operations over the years.
Peer comparison
Dec 31, 2024