Westlake Chemical Corporation (WLK)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,185,000 | 10,297,000 | 10,208,000 | 10,274,000 | 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 |
| Payables | US$ in thousands | 851,000 | 898,000 | 885,000 | 891,000 | 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 |
| Payables turnover | 11.97 | 11.47 | 11.53 | 11.53 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,185,000K ÷ $851,000K
= 11.97
The payables turnover ratio for Westlake Chemical Corporation has been showing a declining trend over the past few years. The ratio decreased from 15.73 on March 31, 2020, to 11.97 on December 31, 2024. This indicates that the company's ability to efficiently manage its accounts payable has weakened over this period.
A decreasing payables turnover ratio may suggest that Westlake Chemical is taking longer to pay its suppliers, which could potentially strain relationships with its vendors. It could also indicate inefficiencies or changes in the company's operating cycle.
It is important for investors and stakeholders to closely monitor this trend and evaluate the reasons behind the decreasing payables turnover ratio to assess the company's financial health and operational efficiency. Further analysis of Westlake Chemical's cash flow management and working capital practices may provide more insights into its payables turnover performance.
Peer comparison
Dec 31, 2024