Westlake Chemical Corporation (WLK)

Days of sales outstanding (DSO)

		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
Receivables turnover		8.19	6.91	6.69	7.20	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
DSO	days	44.58	52.80	54.56	50.73	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

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 some fluctuations over the years based on the provided data. DSO is a measure of how long it takes on average for the company to collect payment after making a sale, indicating the efficiency of its accounts receivable management.

From March 31, 2020, to June 30, 2022, Westlake's DSO ranged between 55.78 days and 63.70 days, with some variation quarter by quarter. This suggests that the company's collection of accounts receivable was relatively stable during this period.

However, from September 30, 2022, to December 31, 2024, there was a notable improvement in DSO, gradually decreasing from 49.75 days to 44.58 days. This reduction indicates that Westlake has become more effective in collecting payments from customers, possibly due to better credit policies, improved collection procedures, or a shift in customer payment behavior.

Overall, a decreasing trend in DSO is generally positive, as it signifies that the company is managing its accounts receivable efficiently, converting sales into cash more quickly. This improvement in DSO could positively impact the company's working capital management and cash flow position.