Westlake Chemical Corporation (WLK)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,142,000 | 12,125,000 | 12,123,000 | 12,167,000 | 12,548,000 | 13,021,000 | 13,862,000 | 15,094,000 | 15,794,000 | 16,002,000 | 15,101,000 | 13,477,000 | 11,778,000 | 10,236,000 | 9,079,000 | 7,929,000 | 7,504,000 | 7,422,000 | 7,590,000 | 8,025,000 |
| Property, plant and equipment | US$ in thousands | 8,633,000 | 8,602,000 | 8,541,000 | 8,523,000 | 8,519,000 | 8,570,000 | 8,550,000 | 8,518,000 | 8,477,000 | 8,301,000 | 8,303,000 | 8,276,000 | 7,606,000 | 6,992,000 | 6,919,000 | 6,921,000 | 6,920,000 | 6,853,000 | 6,887,000 | 6,883,000 |
| Fixed asset turnover | 1.41 | 1.41 | 1.42 | 1.43 | 1.47 | 1.52 | 1.62 | 1.77 | 1.86 | 1.93 | 1.82 | 1.63 | 1.55 | 1.46 | 1.31 | 1.15 | 1.08 | 1.08 | 1.10 | 1.17 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,142,000K ÷ $8,633,000K
= 1.41
The fixed asset turnover ratio of Westlake Chemical Corporation has shown a fluctuating trend over the observed periods, ranging from 1.08 to 1.93. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
Initially, the fixed asset turnover ratio decreased slightly from 1.17 in March 2020 to 1.08 in September 2020, indicating a lower level of revenue generation relative to the value of fixed assets. Subsequently, there was an improvement in the ratio, reaching a peak of 1.93 by September 30, 2022, suggesting a more efficient utilization of fixed assets to generate sales.
However, the ratio started to decline after September 2022, falling to 1.41 by December 31, 2024. This downward trend could imply a decrease in sales relative to the value of fixed assets, which might indicate potential inefficiencies in asset utilization or a slowdown in revenue growth.
Overall, while the fixed asset turnover ratio of Westlake Chemical Corporation has shown some variability, investors and stakeholders should monitor this ratio closely to assess the company's ability to generate revenue from its fixed assets effectively and efficiently.
Peer comparison
Dec 31, 2024