Westlake Chemical Corporation (WLK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,548,000 | 15,794,000 | 11,778,000 | 7,504,000 | 8,118,000 |
| Receivables | US$ in thousands | 1,601,000 | 1,801,000 | 1,868,000 | 1,214,000 | 1,036,000 |
| Receivables turnover | 7.84 | 8.77 | 6.31 | 6.18 | 7.84 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,548,000K ÷ $1,601,000K
= 7.84
The receivables turnover ratio of Westlake Corporation has shown fluctuation over the past five years. The ratio decreased from 7.84 in 2019 to 6.18 in 2020, indicating that the company took longer to collect its receivables in 2020 compared to the previous year. However, there was a significant improvement in 2021, with the receivables turnover ratio increasing to 6.31, suggesting a more efficient collection of receivables that year.
In 2022, there was a further improvement as the ratio rose to 8.77, reflecting a quicker turnover of receivables, possibly indicating effective credit management or more timely collections. However, in 2023, the ratio decreased to 7.84, although still higher than the ratios in 2020 and 2021, showing that the company took slightly longer to collect receivables compared to the previous year.
Overall, while there have been some fluctuations in the receivables turnover ratio of Westlake Corporation, the trend indicates that the company has generally been able to maintain a reasonably efficient process of collecting its accounts receivables over the past five years.
Peer comparison
Dec 31, 2023