Westlake Chemical Corporation (WLK)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,142,000 | 12,125,000 | 12,123,000 | 12,167,000 | 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 |
| Receivables | US$ in thousands | 1,483,000 | 1,754,000 | 1,812,000 | 1,691,000 | 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 |
| Receivables turnover | 8.19 | 6.91 | 6.69 | 7.20 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $12,142,000K ÷ $1,483,000K
= 8.19
The receivables turnover ratio of Westlake Chemical Corporation has shown some fluctuations over the past five years, ranging from a low of 5.73 to a high of 8.77. The ratio indicates how efficiently the company is able to collect payments from its customers. A higher turnover ratio generally suggests that the company is more effective in converting its accounts receivable into cash.
Analyzing the trend, we see that the receivables turnover ratio increased steadily from March 31, 2020, to June 30, 2022. However, there was a slight decline in the ratio in the subsequent quarters, reaching a low of 6.69 on June 30, 2024. From that point on, the ratio increased again to reach its highest value of 8.19 on December 31, 2024.
Overall, the receivables turnover ratio has shown variability but has generally improved over the years, signifying that Westlake Chemical Corporation has been managing its accounts receivable effectively and collecting payments from its customers in a timely manner.
Peer comparison
Dec 31, 2024