Westlake Chemical Corporation (WLK)
Payables 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 |
| Payables | US$ in thousands | 877,000 | 889,000 | 879,000 | 536,000 | 473,000 |
| Payables turnover | 11.78 | 13.18 | 9.42 | 12.09 | 14.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,329,000K ÷ $877,000K
= 11.78
The payables turnover for Westlake Corporation has fluctuated over the past five years. In 2023, the payables turnover was 11.78, a decrease from 13.18 in 2022 but higher than the 9.42 recorded in 2021. This indicates that in 2023, Westlake Corporation took approximately 11.78 days to pay off its accounts payable on average. This measure suggests that the company is managing its accounts payable well, as it indicates how quickly the company is paying off its suppliers relative to its purchase activity. The decreasing trend in payables turnover from 2019 to 2023 may reflect changes in the company's payment terms with suppliers or its cash flow management strategies. This trend should be monitored to ensure that it aligns with the company's overall financial health and liquidity position.
Peer comparison
Dec 31, 2023