Westlake Chemical Partners LP (Westlake Chemical Partners LP) Operating Income : $355 Mil (TTM As of Mar. 2024)

View and export this data going back to 2014. Start your Free Trial

What is Westlake Chemical Partners LP Operating Income?

Westlake Chemical Partners LP's Operating Income for the three months ended in Mar. 2024 was $95 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $355 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Westlake Chemical Partners LP's Operating Income for the three months ended in Mar. 2024 was $95 Mil. Westlake Chemical Partners LP's Revenue for the three months ended in Mar. 2024 was $285 Mil. Therefore, Westlake Chemical Partners LP's Operating Margin % for the quarter that ended in Mar. 2024 was 33.41%.

Warning Sign:

Westlake Chemical Partners LP operating margin has been in a 5-year decline. The average rate of decline per year is -2.1%.

Westlake Chemical Partners LP's 5-Year average Growth Rate for Operating Margin % was -2.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Westlake Chemical Partners LP's annualized ROC % for the quarter that ended in Mar. 2024 was 31.58%. Westlake Chemical Partners LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 41.24%.

Westlake Chemical Partners LP Operating Income Historical Data

The historical data trend for Westlake Chemical Partners LP's Operating Income 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.

* Premium members only.

Westlake Chemical Partners LP Operating Income Chart

Westlake Chemical Partners LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

Get a 7-Day Free Trial

350.15

352.99

410.69

347.69

357.71

Westlake Chemical Partners LP Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															98.16	80.49	86.24	92.82	95.10

Westlake Chemical Partners LP Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $355 Mil.

Westlake Chemical Partners LP (NYSE:WLKP) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Westlake Chemical Partners LP's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	380.412 * ( 1 - 0.23% )	/	( (1207.363	+	1196.233)	/ 2 )
=	379.5370524	/	1201.798
=	31.58 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1316.842	-	50.86	-	( 58.619	-	max(0, 56.335	-	226.203	+	58.619	))
=	1207.363

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1295.076	-	43.083	-	( 55.76	-	max(0, 43.083	-	224.348	+	55.76	))
=	1196.233

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Westlake Chemical Partners LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	385.748	/	( ( (943.843 + max(-36.117, 0))	+	(926.813 + max(-14.095, 0)) )	/	2 )
=	385.748	/	( ( 943.843	+	926.813 )	/	2 )
=	385.748	/	935.328
=	41.24 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(15.344	+	4.432	+	0.44200000000001)	-	(50.86	+	0	+	5.475)
=	-36.117

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(23.871	+	4.86	+	0.25700000000001)	-	(43.083	+	0	+	0)
=	-14.095

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Westlake Chemical Partners LP's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	95.103	/	284.673
	=	33.41 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Westlake Chemical Partners LP Operating Income Related Terms

Thank you for viewing the detailed overview of Westlake Chemical Partners LP's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Westlake Chemical Partners LP (Westlake Chemical Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Westlake Chemical Partners LP (NYSE:WLKP) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

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

Website

https://www.wlkpartners.com

Westlake Chemical Partners LP is a part of the chemical industry in the United States. Its operations are conducted through OpCo, it acquires and develop ethyelene production facilities, which convert ethane into ethylene. OpCo sells ethylene and its co-products such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen to Westlake and other customers located in the United States. Its assets include three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana.

Executives

Andrew Kenner	officer: SVP, Olefin Material & Corp Pr	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Randy Woelfel	director	3411-3433 W. EL SEGUNDO BLVD., HAWTHORNE CA 90250
G Stephen Finley	director	9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Lisa A. Friel	director	2611 PLUM HOLLOW, SAN ANTONIO TX 78258
James Chao	director, 10 percent owner	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Thomas J. Janssens	officer: VP, Olefins Feedstock & Energy	2801 POST OAK BLVD., SUITE 600, HOUSTON TX 77056
Johnathan Stevan Zoeller	officer: VP and CAO	2801 POST OAK BLVD., SUITE 600, HOUSTON TX 77056
Albert Chao	director, 10 percent owner, officer: President & CEO	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
L. Benjamin Ederington	director, officer: VP, General Counsel	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Mark Steven Bender	director, officer: Sr VP, CFO	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Lawrence E. Teel	officer: SVP, Olefins	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Ttwfgp Llc	10 percent owner	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
David Lumpkins	director	600 TRAVIS STREET, SUITE 3250, HOUSTON TX 77002
Angela A Minas	director	3262 WESTHEIMER ROAD #627, HOUSTON TX 77098
Blackstone Securities Partners L.p.	10 percent owner	345 PARK AVENUE, NEW YORK NY 10154-0191