Westlake Chemical Corporation (WLK)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 602,000 | 98,000 | 275,000 | 259,000 | 479,000 | 1,208,000 | 1,324,000 | 1,885,000 | 2,247,000 | 2,659,000 | 2,865,000 | 2,529,000 | 2,015,000 | 1,484,000 | 934,000 | 427,000 | 330,000 | 289,000 | 390,000 | 494,000 |
| Total assets | US$ in thousands | 20,750,000 | 21,109,000 | 21,083,000 | 20,960,000 | 21,035,000 | 21,396,000 | 20,981,000 | 20,806,000 | 20,550,000 | 20,425,000 | 20,372,000 | 19,741,000 | 18,459,000 | 17,108,000 | 14,719,000 | 14,050,000 | 13,835,000 | 13,694,000 | 13,555,000 | 14,163,000 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $602,000K ÷ $20,750,000K
= 2.90%
Westlake Chemical Corporation's return on assets (ROA) has shown fluctuations over the analyzed period, ranging from a low of 0.46% in September 30, 2024, to a high of 14.06% in June 30, 2022. ROA measures the company's ability to generate profits from its assets, indicating how efficient the management is in utilizing its resources to generate earnings.
The trends in Westlake Chemical Corporation's ROA indicate variability in the company's operational efficiency and profitability. Early in the period, ROA experienced a steady increase, peaking in December 31, 2022, at 10.93%. However, in the subsequent periods, there was a significant decrease in ROA, notably dropping to 0.46% in September 30, 2024.
The increasing trend in ROA from March 31, 2022, to December 31, 2022, suggests that the company might have implemented strategies to improve operational efficiency and profitability during that period. It is important to note that the sharp decline in ROA towards the end of the period could indicate potential challenges or inefficiencies in asset utilization.
Overall, monitoring Westlake Chemical Corporation's ROA over time provides valuable insights into the company's financial performance and efficiency in generating returns from its assets. Management should continue to evaluate and address factors impacting ROA to ensure sustainable profitability and operational effectiveness.
Peer comparison
Dec 31, 2024