Westlake Chemical Corporation (WLK)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 20,750,000 | 21,035,000 | 20,550,000 | 18,459,000 | 13,835,000 |
| Operating ROA | 4.22% | 3.47% | 14.84% | 15.17% | 3.10% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $875,000K ÷ $20,750,000K
= 4.22%
The operating return on assets (operating ROA) of Westlake Chemical Corporation has shown fluctuations over the years based on the provided data.
- As of December 31, 2020, the operating ROA was 3.10%. This indicates that for every dollar of assets, the company generated 3.10 cents in operating income.
- By December 31, 2021, the operating ROA had increased significantly to 15.17%, demonstrating improved operational efficiency and profitability.
- The trend continued into December 31, 2022, with an operating ROA of 14.84%, reflecting strong performance in utilizing its assets to generate operating income.
- However, by December 31, 2023, the operating ROA decreased to 3.47%, signaling a potential dip in operational effectiveness or profitability.
- The most recent data point, as of December 31, 2024, shows a slight improvement in the operating ROA to 4.22%.
Overall, the trend in Westlake Chemical Corporation's operating ROA suggests some volatility in its operational efficiency and profitability over the years, which may require further investigation to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2024