Westlake Chemical Corporation (WLK)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,185,000 | 10,329,000 | 11,721,000 | 8,283,000 | 6,481,000 |
| Payables | US$ in thousands | 851,000 | 877,000 | 889,000 | 879,000 | 536,000 |
| Payables turnover | 11.97 | 11.78 | 13.18 | 9.42 | 12.09 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,185,000K ÷ $851,000K
= 11.97
The payables turnover ratio for Westlake Chemical Corporation has shown some fluctuations over the years. In 2020, the company had a payables turnover ratio of 12.09, indicating that it took approximately 30 days to pay off its accounts payable during that year. In 2021, the ratio decreased to 9.42, suggesting that the company took around 38 days to settle its payables.
However, there was a significant improvement in 2022, with the payables turnover ratio increasing to 13.18. This implies that Westlake Chemical Corporation reduced its payment period to approximately 28 days during that year. Subsequently, in 2023, the ratio slightly decreased to 11.78, indicating a payment period of about 31 days.
By the end of 2024, the payables turnover ratio slightly increased to 11.97, implying that the company took approximately 30 days to pay off its accounts payable. Overall, the fluctuations in the payables turnover ratio suggest variations in the company's efficiency in managing its accounts payable and cash flow over the analyzed period.
Peer comparison
Dec 31, 2024