Westlake Chemical Corporation (WLK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,329,000 | 11,721,000 | 8,283,000 | 6,481,000 | 6,858,000 |
| Inventory | US$ in thousands | 1,622,000 | 1,866,000 | 1,407,000 | 918,000 | 936,000 |
| Inventory turnover | 6.37 | 6.28 | 5.89 | 7.06 | 7.33 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,329,000K ÷ $1,622,000K
= 6.37
Westlake Corporation's inventory turnover ratio has fluctuated over the past five years. The company's inventory turnover was 6.37 in 2023, slightly higher than the previous year's ratio of 6.28. This indicates that Westlake was able to sell and replace its inventory approximately 6.37 times during the year.
Comparing to historical data, the 2023 inventory turnover is lower than the ratios in 2019 and 2020, which were 7.33 and 7.06, respectively. This suggests that in 2023, Westlake may have been holding onto its inventory for a slightly longer period before selling it.
On the other hand, the 2023 ratio is higher than the 2021 ratio of 5.89, indicating an improvement in inventory turnover efficiency compared to two years ago. Overall, Westlake Corporation's inventory turnover appears to show some variability but remains at a level that generally reflects efficient inventory management.
Peer comparison
Dec 31, 2023