Westlake Chemical Corporation (WLK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 17.68% | 19.87% | 20.03% | 23.72% | 25.79% | 28.76% | 32.08% | 31.69% | 29.67% | 26.59% | 21.50% | 15.75% | 13.63% | 12.80% | 14.14% | 15.50% | 15.52% | 16.57% | 18.20% | 20.49% |
| 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% |
| Pretax margin | 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% | 6.52% | 7.74% | 9.62% | 12.02% |
| Net profit margin | 3.82% | 9.28% | 9.55% | 12.49% | 14.23% | 16.62% | 18.97% | 18.77% | 17.11% | 14.50% | 10.29% | 5.39% | 4.40% | 3.89% | 5.14% | 6.16% | 5.19% | 5.74% | 7.39% | 9.18% |
Westlake Corporation's profitability ratios have shown a general decreasing trend over the past eight quarters. The gross profit margin, which indicates the efficiency of the company's production process, has decreased from 32.08% in Q2 2022 to 17.68% in Q4 2023. This downward trend suggests declining efficiency in generating profits from production.
Similarly, the operating profit margin, a measure of profitability after accounting for operating expenses, has decreased from 26.36% in Q2 2022 to 9.82% in Q4 2023. This decline indicates a reduction in the company's ability to generate profits from its core business operations.
The pretax margin, reflecting profitability before taxes, has also exhibited a decreasing trend from 25.18% in Q2 2022 to 5.58% in Q4 2023. This suggests that the company's profitability is declining, as it is earning less income relative to sales before accounting for taxes.
Lastly, the net profit margin, which represents the percentage of revenue that translates into profit for the company after all expenses have been deducted, has decreased from 18.91% in Q2 2022 to 3.79% in Q4 2023. This decline highlights a decrease in the company's bottom-line profitability over the analyzed period.
Overall, Westlake Corporation's profitability ratios have shown a consistent downward trend, signaling potential challenges in generating and maintaining profits in recent quarters.
Return on investment
| 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 return on assets (Operating ROA) | 3.47% | 7.52% | 8.46% | 12.28% | 14.84% | 17.61% | 19.35% | 17.66% | 15.17% | 12.30% | 8.99% | 4.55% | 3.10% | 2.58% | 3.69% | 4.65% | 4.95% | 5.81% | 7.62% | 9.43% |
| Return on assets (ROA) | 2.28% | 5.65% | 6.31% | 9.06% | 10.93% | 13.02% | 14.06% | 12.81% | 10.92% | 8.67% | 6.35% | 3.04% | 2.39% | 2.11% | 2.88% | 3.49% | 3.17% | 3.60% | 5.09% | 6.45% |
| Return on total capital | 5.54% | 10.97% | 11.76% | 17.01% | 20.75% | 25.05% | 27.67% | 25.66% | 21.75% | 17.21% | 12.80% | 6.55% | 4.47% | 3.58% | 5.24% | 6.34% | 7.02% | 8.17% | 11.04% | 13.76% |
| Return on equity (ROE) | 4.68% | 11.23% | 12.56% | 18.32% | 22.63% | 27.64% | 30.47% | 29.13% | 25.33% | 20.33% | 13.79% | 6.82% | 5.46% | 4.86% | 6.61% | 8.38% | 7.18% | 8.10% | 10.88% | 13.87% |
Westlake Corporation's profitability ratios show a consistent trend of decline over the quarters in 2023.
The Operating ROA decreased from 12.40% in Q1 to 5.86% in Q4, indicating a decrease in operating efficiency and profitability in utilizing its assets to generate operating income.
Similarly, the ROA declined from 9.00% in Q1 to 2.26% in Q4, reflecting a decrease in overall profitability in generating net income from its total assets.
Return on total capital also decreased from 16.98% in Q1 to 8.13% in Q4, showing a decline in the company's ability to generate returns from its total capital employed.
The ROE decreased from 18.20% in Q1 to 4.65% in Q4, indicating a lower return to shareholders for the equity invested in the company.
Overall, the declining trend in profitability ratios for Westlake Corporation in 2023 suggests a potential need for the company to review its operational efficiency, asset utilization, and overall financial performance to improve its profitability in the future quarters.