Westlake Chemical Corporation (WLK)

Number of days of payables

		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
Payables turnover		11.78	12.87	13.82	13.91	13.18	11.47	8.97	9.04	9.42	10.47	10.69	11.08	12.09	14.48	14.68	15.73	14.50	13.84	13.22	12.35
Number of days of payables	days	30.99	28.37	26.41	26.25	27.68	31.83	40.71	40.36	38.73	34.88	34.16	32.95	30.19	25.21	24.87	23.20	25.17	26.37	27.61	29.56

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.78
= 30.99

The number of days of payables for Westlake Corporation has shown a declining trend over the past four quarters, indicating that the company is taking fewer days to pay its suppliers. In Q4 2023, the number of days of payables was 30.99 days, compared to 28.27 days in Q3 2023 and 26.31 days in Q2 2023. This suggests that the company has been managing its payables more efficiently during this period.

However, it is worth noting that the number of days of payables in Q1 2023 was slightly higher at 26.18 days, which could be due to various factors such as changes in payment terms or seasonal fluctuations. Comparing the current data to the same quarter in the previous year, Q4 2022 had a higher number of days of payables at 27.68 days, indicating an improvement in payables management efficiency in the most recent quarter.

Overall, the decreasing trend in the number of days of payables implies that Westlake Corporation has been paying its suppliers more promptly, potentially improving its relationships with suppliers and enhancing cash flow management.