Westlake Chemical Corporation (WLK)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,142,000 | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 |
| Property, plant and equipment | US$ in thousands | 8,633,000 | 8,519,000 | 8,477,000 | 7,606,000 | 6,920,000 |
| Fixed asset turnover | 1.41 | 1.47 | 1.86 | 1.55 | 1.08 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,142,000K ÷ $8,633,000K
= 1.41
Westlake Chemical Corporation's fixed asset turnover has shown variability over the past five years. The ratio has increased from 1.08 in December 2020 to 1.86 in December 2022, indicating that the company generated $1.86 in revenue for every dollar invested in fixed assets during that year.
However, in the subsequent years, the fixed asset turnover ratio declined to 1.47 in December 2023 and further to 1.41 in December 2024. This decreasing trend suggests that the company's efficiency in utilizing its fixed assets to generate revenue has slightly weakened in those years.
Overall, Westlake Chemical Corporation has demonstrated moderate efficiency in generating revenue from its fixed assets, with fluctuations observed in recent years. Further analysis may be required to understand the underlying reasons for these changes and to assess the company's overall asset utilization efficiency.
Peer comparison
Dec 31, 2024