Westlake Chemical Corporation (WLK)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 602,000 | 479,000 | 2,247,000 | 2,015,000 | 330,000 |
| Total assets | US$ in thousands | 20,750,000 | 21,035,000 | 20,550,000 | 18,459,000 | 13,835,000 |
| ROA | 2.90% | 2.28% | 10.93% | 10.92% | 2.39% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $602,000K ÷ $20,750,000K
= 2.90%
Westlake Chemical Corporation's Return on Assets (ROA) has shown fluctuations over the past five years. In December 2020, the ROA stood at 2.39%, indicating that the company generated a profit of 2.39 cents for every dollar of assets it owned. By December 2021, the ROA improved significantly to 10.92%, reflecting a more efficient utilization of assets to generate profits. This positive trend continued in December 2022, where the ROA was recorded at 10.93%.
However, in December 2023, there was a notable decline in ROA to 2.28%, suggesting a decrease in profitability relative to the company's asset base. The following year, December 2024, saw a slight improvement in ROA to 2.90%, although it remained below the levels seen in 2021 and 2022.
Overall, Westlake Chemical Corporation's ROA performance indicates some volatility in profitability relative to its asset base, with significant improvements in 2021 and 2022, followed by a decline in 2023 and a modest recovery in 2024. Further analysis of the company's financial and operational strategies may be necessary to understand the drivers behind these fluctuations and to assess the sustainability of its ROA levels.
Peer comparison
Dec 31, 2024