Westlake Chemical Corporation (WLK)
Payables 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 |
| Payables | US$ in thousands | 877,000 | 811,000 | 802,000 | 828,000 | 889,000 | 994,000 | 1,144,000 | 1,018,000 | 879,000 | 718,000 | 667,000 | 603,000 | 536,000 | 447,000 | 444,000 | 431,000 | 473,000 | 496,000 | 521,000 | 548,000 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,329,000K ÷ $877,000K
= 11.78
The payables turnover ratio for Westlake Corporation has shown fluctuating trends over the past eight quarters. In Q4 2023, the payables turnover was at 11.78, slightly lower than the previous quarter. However, it has generally been on an upward trajectory since Q1 2022, indicating that the company is taking longer to pay its suppliers.
The peak in payables turnover was observed in Q2 2023 at 13.87, suggesting that the company was able to pay off its suppliers more frequently during that period. This was followed by a slight decline in Q3 2023 and a further decrease in Q4 2023.
Comparing the latest data to the same quarter in the previous year, there has been an improvement in payables turnover from 13.18 in Q4 2022 to 11.78 in Q4 2023. This could suggest that the company is managing its payables more efficiently or negotiating better terms with its suppliers.
Overall, while the payables turnover ratio for Westlake Corporation has shown fluctuations, the general trend indicates a gradual improvement in the efficiency of paying off its suppliers. A lower payables turnover ratio typically indicates that the company is taking longer to settle its payables, which could impact its relationship with suppliers and potentially its liquidity position.
Peer comparison
Dec 31, 2023