Westlake Chemical Corporation (WLK)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		7.84	6.72	7.47	8.23	8.77	7.34	5.96	5.73	6.31	6.23	5.86	5.98	6.18	5.74	6.54	6.34	7.84	7.52	6.94	7.59
DSO	days	46.57	54.35	48.84	44.37	41.62	49.75	61.27	63.70	57.89	58.55	62.27	61.09	59.05	63.59	55.78	57.54	46.58	48.52	52.59	48.08

December 31, 2023 calculation

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

The Days Sales Outstanding (DSO) for Westlake Corporation have shown fluctuations over the past eight quarters. In Q4 2023, the DSO decreased to 46.57 days from 54.35 days in Q3 2023, indicating an improvement in the company's ability to collect payments from customers. This trend continued from Q2 2023, where DSO stood at 48.84 days. Q1 2023 also saw a low DSO of 44.37 days, suggesting efficient management of accounts receivable.

Looking back further, in Q4 2022, the DSO was 41.62 days, the lowest in the past two years, indicating robust collections. However, there was a spike in DSO in Q3 2022 to 49.75 days, followed by even higher levels in Q2 2022 and Q1 2022 at 61.27 days and 63.70 days, respectively. These elevated DSO figures may suggest delays in receiving payments from customers during those quarters.

Overall, Westlake Corporation's DSO has exhibited some volatility, but the recent improvements in DSO indicate a more efficient accounts receivable management process. It is essential for the company to continue monitoring and managing its DSO to ensure timely collection of payments and optimize its working capital management.