Westlake Chemical Corporation (WLK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 479,000 | 2,247,000 | 2,015,000 | 330,000 | 421,000 |
| Total assets | US$ in thousands | 21,035,000 | 20,550,000 | 18,459,000 | 13,835,000 | 13,261,000 |
| ROA | 2.28% | 10.93% | 10.92% | 2.39% | 3.17% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $479,000K ÷ $21,035,000K
= 2.28%
Westlake Corporation's return on assets (ROA) has exhibited variability over the past five years. In 2023, the ROA decreased to 2.26% from 10.88% in 2022 and 10.86% in 2021, indicating a significant decline in profitability. This decrease suggests that the company's ability to generate profits from its assets weakened in 2023. In 2020, the ROA was 2.38%, showing a slight improvement compared to 2019 when it stood at 3.16%.
Overall, the trend in ROA for Westlake Corporation has been inconsistent, with periods of higher and lower returns. Analyzing the factors contributing to these fluctuations would be essential to understanding the company's performance and making informed decisions regarding its asset management strategies in the future.
Peer comparison
Dec 31, 2023