Westlake Chemical Corporation (WLK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 10,527,000 | 10,241,000 | 9,931,000 | 7,955,000 | 6,043,000 |
| ROE | 5.72% | 4.68% | 22.63% | 25.33% | 5.46% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $602,000K ÷ $10,527,000K
= 5.72%
Westlake Chemical Corporation's return on equity (ROE) has shown variability over the past five years. In 2020, the ROE was 5.46%, indicating a relatively low return generated on shareholders' equity. However, there was a significant improvement in 2021, with the ROE increasing to 25.33%, signaling a substantial rise in the profitability of the company.
In 2022 and 2023, Westlake Chemical Corporation maintained a relatively robust ROE of 22.63% and 4.68%, respectively. However, the ROE dropped slightly in 2024 to 5.72%, indicating a decrease in the return generated on shareholders' equity compared to the previous year.
Overall, the fluctuation in Westlake Chemical Corporation's ROE over the years suggests varying levels of efficiency in utilizing shareholder funds to generate profits. It is important for the company to assess the factors contributing to these fluctuations to sustain and enhance its return on equity in the future.
Peer comparison
Dec 31, 2024