Westlake (Westlake) ROCE %

: -11.18% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Westlake's annualized ROCE % for the quarter that ended in Dec. 2023 was -11.18%.

Westlake ROCE % Historical Data

The historical data trend for Westlake's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Westlake Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

6.19

3.86

19.96

18.17

4.74

Westlake Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																7.69	12.10	8.94	8.62	-11.18

Westlake ROCE % Calculation

Westlake's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	865	/	( ( (20550 - 2298)	+	(21035 - 2790) )	/ 2 )
	=	865	/	( (18252	+	18245)	/ 2 )
	=	865	/	18248.5
	=	4.74 %

Westlake's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	-2068	/	( ( (21396 - 2659)	+	(21035 - 2790) )	/ 2 )
	=	-2068	/	( ( 18737	+	18245 )	/ 2 )
	=	-2068	/	18491
	=	-11.18 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Westlake (NYSE:WLK) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Westlake ROCE % Related Terms

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Westlake (Westlake) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Westlake Corp (NYSE:WLK) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

UEO:Germany

Address

2801 Post Oak Boulevard, Suite 600, Houston, TX, USA, 77056

Website

https://www.westlake.com

Westlake Corp is a manufacturer and global supplier of chemicals, polymers and building products. Its Performance and Essential Materials segment offers a wide range of essential building blocks for making products utilized in everyday living, including olefins, vinyl chemicals, polyethylene, and epoxies. Its Housing and Infrastructure Products segment produces key finished goods for building products, pipe and fittings, and global compounds businesses.

Executives

Robert F. Buesinger	officer: Sr. Vice President, Vinyls	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
David Tsung-hung Chao	director, 10 percent owner	1000 UPTOWN PARK BLVD. #34, HOUSTON TX 77056
Kimberly S Lubel	director	P.O. BOX 696000, SAN ANTONIO TX 78269-6000
Johnathan Stevan Zoeller	officer: VP and CAO	2801 POST OAK BLVD., SUITE 600, HOUSTON TX 77056
Thomas J. Janssens	officer: SVP, Ops - PEM & Corp Logistic	2801 POST OAK BLVD., SUITE 600, HOUSTON TX 77056
Catherine T. Chao	director, 10 percent owner	5815 NE 32ND AVE, PORTLAND OR 97211
Carolyn Chao Sabat	director, 10 percent owner	3019 CHEVY CHASE DR., HOUSTON TX 77019
Albert Chao	director, officer: President and CEO	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Roger L. Kearns	officer: EVP, Vinyls Chemicals	2801 POST OAK BLVD., HOUSTON TX 77056
L. Benjamin Ederington	officer: VP, General Counsel, Corp Secy	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Mark Steven Bender	officer: Vice President/Treasurer	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Lawrence E. Teel	officer: Vice President, Olefins	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Andrew Kenner	officer: VP -- Manufacturing	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Ttwfgp Llc	10 percent owner	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
George J Mangieri	officer: Vice President and Controller	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056