Westlake Chemical Corporation (WLK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 16.12% | 15.08% | 15.80% | 15.56% | 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% |
| Operating profit margin | 7.21% | 2.12% | 3.51% | 3.42% | 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% |
| 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% |
| Net profit margin | 4.96% | 0.81% | 2.27% | 2.13% | 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% |
Westlake Chemical Corporation's profitability ratios have shown some fluctuations over the past few years.
1. Gross Profit Margin:
The gross profit margin has generally improved from 15.50% in March 2020 to a peak of 32.08% in June 2022. However, it decreased to 15.08% by December 2024. This indicates that the company's ability to generate profits from its core operations improved significantly but then declined towards the end of the period.
2. Operating Profit Margin:
The operating profit margin experienced significant volatility, starting at 8.20% in March 2020, peaking at 26.10% in June 2022, and falling to 2.12% in September 2024. This suggests fluctuating efficiency in managing operating expenses and generating profits before interest and taxes.
3. Pretax Margin:
The pretax margin also exhibited fluctuations, with a similar pattern to the operating profit margin. It ranged from 6.60% in March 2020 to 1.99% in September 2024. The company's ability to generate profits before accounting for taxes showed variability throughout the period.
4. Net Profit Margin:
The net profit margin followed a similar trend, improving from 6.16% in March 2020 to 18.97% in June 2022 before declining to 4.96% by December 2024. This indicates that after accounting for all expenses, including taxes, the company's bottom-line profitability fluctuated over the period.
Overall, Westlake Chemical Corporation's profitability ratios show a mix of improvements and declines, indicating the company's changing profitability levels and cost management efficiency over the period. Continued monitoring and analysis of these ratios will be important to assess the company's financial health and performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.22% | 1.22% | 2.02% | 1.98% | 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% |
| Return on assets (ROA) | 2.90% | 0.46% | 1.30% | 1.24% | 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% |
| Return on total capital | 6.38% | 2.42% | 3.86% | 3.61% | 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% |
| Return on equity (ROE) | 5.72% | 0.92% | 2.60% | 2.51% | 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% |
Westlake Chemical Corporation's profitability ratios exhibit fluctuating trends over the period under review.
Starting with the Operating Return on Assets (Operating ROA), the company's performance reflects a gradual improvement from March 31, 2020, to June 30, 2022, with a peak at 19.35% before declining. The ratio reached its lowest point at 1.22% on September 30, 2024.
In terms of Return on Assets (ROA), a similar pattern is observed, with a steady rise in performance until June 30, 2022, followed by a decrease. The ratio hit its lowest point at 0.46% on September 30, 2024, indicating a decrease in the efficiency of asset utilization.
The Return on Total Capital ratio shows a consistent increase up to June 30, 2022, where it peaked at 27.67%. However, there is a subsequent decline in performance, reaching its lowest level at 2.42% on September 30, 2024.
Lastly, examining the Return on Equity (ROE), the trend mirrors the other ratios, with a rise in performance until June 30, 2022, followed by a decline in profitability. The ratio fell to its lowest point at 0.92% on September 30, 2024, emphasizing a decrease in the company's ability to generate value for its shareholders.
Overall, the analysis of Westlake Chemical Corporation's profitability ratios highlights fluctuations and varying trends in performance over the period, underscoring the importance of monitoring and evaluating these metrics for a comprehensive understanding of the company's financial health.