Westlake Chemical Corporation (WLK)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 657,000 | 2,896,000 | 2,622,000 | 288,000 | 529,000 |
| Revenue | US$ in thousands | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 | 8,118,000 |
| Pretax margin | 5.24% | 18.34% | 22.26% | 3.84% | 6.52% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $657,000K ÷ $12,548,000K
= 5.24%
Westlake Corporation's pretax margin has exhibited fluctuating trends over the past five years. In 2023, the pretax margin decreased significantly to 5.58% from 18.65% in 2022 and 22.73% in 2021. This decline suggests a less efficient cost management or a decrease in profitability before taxes in 2023. However, the pretax margin in 2020 was relatively low at 4.41% but improved in 2019 to 7.02%.
The declining trend in pretax margin in recent years may raise concerns about Westlake Corporation's ability to maintain profitability levels. Further analysis of the company's cost structure, operational efficiency, and revenue generation is necessary to identify the factors driving these fluctuations in pretax margin.
Peer comparison
Dec 31, 2023