Westlake Chemical Corporation (WLK)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 893,000 | 657,000 | 2,896,000 | 2,622,000 | 288,000 |
| Revenue | US$ in thousands | 12,142,000 | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 |
| Pretax margin | 7.35% | 5.24% | 18.34% | 22.26% | 3.84% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $893,000K ÷ $12,142,000K
= 7.35%
The pretax margin for Westlake Chemical Corporation has shown variability over the past five years. In 2020, the pretax margin stood at 3.84%, indicating that for every dollar of revenue generated, the company retained $0.0384 before taxes. However, there was a significant improvement in 2021, with the pretax margin increasing to 22.26%, suggesting improved operational efficiency and cost management.
In 2022, the pretax margin decreased to 18.34%, indicating a slight decline in the company's profitability before taxes compared to the previous year. The following year, in 2023, the pretax margin dropped further to 5.24%, signaling a significant decrease in earnings retained before taxes.
By the end of 2024, the pretax margin improved to 7.35%, although still below the levels seen in 2021 and 2022. Overall, the pretax margin trend for Westlake Chemical Corporation shows fluctuations, and the company may need to focus on sustaining or improving profitability levels to ensure long-term financial health and growth.
Peer comparison
Dec 31, 2024