Westlake Chemical Corporation (WLK)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.19 | 7.84 | 8.77 | 6.31 | 6.18 | |
| DSO | days | 44.58 | 46.57 | 41.62 | 57.89 | 59.05 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.19
= 44.58
The days of sales outstanding (DSO) for Westlake Chemical Corporation have shown a declining trend over the years. Starting at 59.05 days as of December 31, 2020, the DSO decreased to 57.89 days by December 31, 2021 and further dropped to 41.62 days by December 31, 2022. However, there was a slight increase to 46.57 days by December 31, 2023, followed by a decrease to 44.58 days by December 31, 2024.
This trend indicates that Westlake Chemical Corporation has been improving its efficiency in collecting accounts receivable in a timelier manner, which can be a positive sign of effective credit management and liquidity management. The lower DSO suggests that the company is converting its sales into cash more quickly, potentially improving cash flow and reducing the risk of bad debts.
Peer comparison
Dec 31, 2024