Westlake Chemical Corporation (WLK)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 729,000 | 1,608,000 | 1,775,000 | 2,554,000 | 3,050,000 | 3,596,000 | 3,941,000 | 3,486,000 | 2,800,000 | 2,105,000 | 1,323,000 | 639,000 | 429,000 | 353,000 | 500,000 | 658,000 | 656,000 | 761,000 | 931,000 | 1,141,000 |
| 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 |
| Operating profit margin | 5.81% | 12.35% | 12.80% | 16.92% | 19.31% | 22.47% | 26.10% | 25.87% | 23.77% | 20.56% | 14.57% | 8.06% | 5.72% | 4.76% | 6.59% | 8.20% | 8.08% | 9.25% | 11.06% | 13.41% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $729,000K ÷ $12,548,000K
= 5.81%
Westlake Corporation's operating profit margin has exhibited a declining trend over the past eight quarters. The company's operating profit margin decreased from 26.10% in Q1 2022 to 9.82% in Q4 2023. This indicates that the company's ability to generate profits from its core business operations has weakened over time. Factors such as increasing costs, lower sales revenues, or inefficiencies in operations may have contributed to this decline. It is crucial for Westlake Corporation to closely monitor and address the underlying reasons for the decreasing trend in order to improve its profitability and financial performance in the future.
Peer comparison
Dec 31, 2023