Westlake Chemical Corporation (WLK)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	10,329,000	10,434,000	11,085,000	11,514,000	11,721,000	11,400,000	10,257,000	9,206,000	8,283,000	7,514,000	7,127,000	6,680,000	6,481,000	6,472,000	6,517,000	6,781,000	6,858,000	6,866,000	6,887,000	6,766,000
Inventory	US$ in thousands	1,622,000	1,672,000	1,671,000	1,842,000	1,866,000	2,024,000	2,021,000	1,884,000	1,407,000	1,124,000	965,000	955,000	918,000	829,000	845,000	934,000	936,000	906,000	925,000	1,021,000
Inventory turnover		6.37	6.24	6.63	6.25	6.28	5.63	5.08	4.89	5.89	6.69	7.39	6.99	7.06	7.81	7.71	7.26	7.33	7.58	7.45	6.63

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,329,000K ÷ $1,622,000K
= 6.37

Westlake Corporation's inventory turnover has shown a positive trend over the past eight quarters, indicating an efficient management of its inventory. The company's inventory turnover ratio has consistently increased from 4.89 in Q1 2022 to 6.37 in Q4 2023. This suggests that Westlake has been able to sell and replace its inventory more frequently in recent quarters.

The average inventory turnover ratio for the past eight quarters is approximately 5.88, with a standard deviation of 0.69, indicating moderate variability in the ratio. The highest inventory turnover ratio was observed in Q2 2023 at 6.63, while the lowest was recorded in Q1 2022 at 4.89.

Overall, Westlake Corporation's inventory turnover ratio reflects a positive trend towards more efficient management of inventory, which can lead to improved cash flow and profitability for the company.