Westlake Chemical Corporation (WLK)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 893,000 | 241,000 | 423,000 | 376,000 | 657,000 | 1,514,000 | 1,644,000 | 2,410,000 | 2,896,000 | 3,435,000 | 3,750,000 | 3,297,000 | 2,622,000 | 1,940,000 | 1,182,000 | 498,000 | 288,000 | 202,000 | 368,000 | 530,000 |
| Revenue (ttm) | US$ in thousands | 12,142,000 | 12,125,000 | 12,123,000 | 12,167,000 | 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 |
| Pretax margin | 7.35% | 1.99% | 3.49% | 3.09% | 5.24% | 11.63% | 11.86% | 15.97% | 18.34% | 21.47% | 24.83% | 24.46% | 22.26% | 18.95% | 13.02% | 6.28% | 3.84% | 2.72% | 4.85% | 6.60% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $893,000K ÷ $12,142,000K
= 7.35%
Westlake Chemical Corporation's pretax margin has displayed fluctuations over the periods provided. The pretax margin increased from 6.60% on March 31, 2020, to a peak of 24.83% on June 30, 2022. This significant rise in profitability reflects strong operational efficiency and effective cost management during this period.
However, the pretax margin started to decline thereafter, reaching 1.99% on September 30, 2024, before slightly recovering to 7.35% on December 31, 2024. The decreasing trend in pretax margin from mid-2022 onwards may indicate rising costs or a slowdown in revenue growth relative to expenses.
It is essential for Westlake Chemical Corporation to closely monitor its cost structure and revenue generation capabilities to sustain profitability levels seen in the earlier periods. Analyzing the underlying factors contributing to the fluctuations in pretax margin can help the company make informed decisions to enhance profitability and ensure long-term financial stability.
Peer comparison
Dec 31, 2024