Westlake Chemical Corporation (WLK)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,548,000 | 13,021,000 | 13,862,000 | 15,094,000 | 15,794,000 | 16,002,000 | 15,101,000 | 13,477,000 | 11,778,000 | 10,236,000 | 9,079,000 | 7,929,000 | 7,504,000 | 7,422,000 | 7,590,000 | 8,025,000 | 8,118,000 | 8,230,000 | 8,419,000 | 8,510,000 |
| Receivables | US$ in thousands | 1,601,000 | 1,939,000 | 1,855,000 | 1,835,000 | 1,801,000 | 2,181,000 | 2,535,000 | 2,352,000 | 1,868,000 | 1,642,000 | 1,549,000 | 1,327,000 | 1,214,000 | 1,293,000 | 1,160,000 | 1,265,000 | 1,036,000 | 1,094,000 | 1,213,000 | 1,121,000 |
| Receivables turnover | 7.84 | 6.72 | 7.47 | 8.23 | 8.77 | 7.34 | 5.96 | 5.73 | 6.31 | 6.23 | 5.86 | 5.98 | 6.18 | 5.74 | 6.54 | 6.34 | 7.84 | 7.52 | 6.94 | 7.59 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $12,548,000K ÷ $1,601,000K
= 7.84
Westlake Corporation's receivables turnover has been fluctuating over the past eight quarters. The trend indicates that the company is collecting its accounts receivable more frequently on average in the more recent quarters compared to earlier quarters. In Q4 2023, the receivables turnover was 7.84, which was an increase from the previous quarter but lower than the Q4 2022 figure of 8.77. This implies that the company collected its receivables 7.84 times during the quarter.
Overall, the variability in the receivables turnover may suggest changes in the company's credit policies, efficiency in collecting receivables, or the nature of its customer base. It would be important to further investigate the reasons behind these fluctuations to assess the effectiveness of the company's accounts receivable management and its impact on liquidity and cash flow.
Peer comparison
Dec 31, 2023