Westlake Chemical Corporation (WLK)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		7.84	8.77	6.31	6.18	7.84
DSO	days	46.57	41.62	57.89	59.05	46.58

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.84
= 46.57

Westlake Corporation's Days Sales Outstanding (DSO) shows the number of days it takes the company to collect its accounts receivable. From 2019 to 2021, Westlake's DSO increased, indicating a longer time to collect receivables. This trend may suggest issues with the company's credit policies, collection procedures, or the quality of its customer base.

In 2022, there was a slight improvement in DSO, suggesting a more efficient collection process or an adjustment in credit terms. However, in 2023, the DSO increased again, though not to the levels seen in 2021, indicating a potential slowing in collections.

Overall, Westlake Corporation should focus on managing its accounts receivable effectively to maintain a healthy cash flow and liquidity position. A higher DSO could imply a higher risk of bad debts and inefficiencies in working capital management, which may impact the company's financial health in the long run.