Westlake Chemical Corporation (WLK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 10,527,000 | 10,662,000 | 10,574,000 | 10,331,000 | 10,241,000 | 10,754,000 | 10,544,000 | 10,291,000 | 9,931,000 | 9,621,000 | 9,404,000 | 8,681,000 | 7,955,000 | 7,298,000 | 6,771,000 | 6,261,000 | 6,043,000 | 5,949,000 | 5,901,000 | 5,893,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $602,000K ÷ $10,527,000K
= 5.72%
The return on equity (ROE) of Westlake Chemical Corporation has shown fluctuations over the reporting periods. The ROE was relatively low in the first half of 2020, ranging between 4.86% and 8.38%. However, there was an improvement in the second half of 2020, with ROE increasing to above 13% by December 31, 2020.
Subsequently, the ROE continued to increase steadily throughout 2021 and peaked at 30.47% by June 30, 2022. This significant improvement in ROE indicates that the company was effectively generating profits from shareholders' equity.
However, starting from September 30, 2022, the ROE began to decline gradually, falling to 0.92% by September 30, 2024. This downward trend suggests that the company may be facing challenges in maintaining profitability relative to shareholders' equity.
Overall, the analysis of Westlake Chemical Corporation's ROE highlights both positive and negative trends in the company's ability to generate returns for its shareholders over the reporting periods. It is essential for investors and stakeholders to monitor these fluctuations and understand the underlying factors driving the changes in ROE to assess the company's financial performance accurately.
Peer comparison
Dec 31, 2024