Westlake Chemical Corporation (WLK)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,142,000 | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 |
| Receivables | US$ in thousands | 1,483,000 | 1,601,000 | 1,801,000 | 1,868,000 | 1,214,000 |
| Receivables turnover | 8.19 | 7.84 | 8.77 | 6.31 | 6.18 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,142,000K ÷ $1,483,000K
= 8.19
Westlake Chemical Corporation's receivables turnover ratio has demonstrated a generally positive trend over the past five years. The ratio increased from 6.18 in December 31, 2020, to 8.19 in December 31, 2024, indicating an improvement in the company's efficiency in collecting receivables.
A higher receivables turnover ratio suggests that Westlake Chemical Corporation is managing its accounts receivable more effectively, which is a positive sign for the company's liquidity and cash flow. This improvement could be attributed to the company's effective credit policies, prompt invoicing, and efficient collection processes.
Overall, the increasing trend in receivables turnover ratio reflects positively on Westlake Chemical Corporation's ability to convert its accounts receivable into cash in a timely manner, which is crucial for maintaining a healthy working capital position and supporting operational activities.
Peer comparison
Dec 31, 2024