Westlake Chemical Corporation (WLK)

Days of inventory on hand (DOH)

		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
Inventory turnover		6.00	5.89	6.06	6.19	6.37	6.24	6.63	6.25	6.28	5.63	5.08	4.89	5.89	6.69	7.39	6.99	7.06	7.81	7.71	7.26
DOH	days	60.82	61.93	60.21	59.01	57.32	58.49	55.02	58.39	58.11	64.80	71.92	74.70	62.00	54.60	49.42	52.18	51.70	46.75	47.33	50.27

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.00
= 60.82

The days of inventory on hand (DOH) for Westlake Chemical Corporation has shown some fluctuations over the current and past few years. From March 31, 2020, to June 30, 2022, DOH ranged between 47.33 days and 71.92 days, displaying relatively stable inventory management. However, there was a noticeable increase in DOH to 74.70 days on March 31, 2022, indicating a potential buildup of inventory levels.

Subsequently, there was a slight decline in DOH in the following quarters up to June 30, 2024, fluctuating between 55.02 days and 61.93 days. This suggests some improvement in inventory turnover compared to the peak on March 31, 2022. Overall, the trend in DOH indicates that Westlake Chemical Corporation may have experienced challenges with inventory management but has made efforts to bring it back under control by mid-2024. Monitoring this ratio in future periods will be essential to ensure inventory is being efficiently managed to support the company's operations and financial performance.