Westlake Chemical Corporation (WLK)
Total asset 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 |
| Total assets | US$ in thousands | 21,035,000 | 20,550,000 | 18,459,000 | 13,835,000 | 13,261,000 |
| Total asset turnover | 0.60 | 0.77 | 0.64 | 0.54 | 0.61 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,548,000K ÷ $21,035,000K
= 0.60
The total asset turnover ratio for Westlake Corporation has fluctuated over the past five years, ranging from 0.54 in 2020 to 0.77 in 2022. This ratio indicates the company's efficiency in generating sales revenue from its total assets. A higher total asset turnover ratio suggests that the company is using its assets more effectively to generate revenue.
The decrease in the total asset turnover ratio from 2022 to 2023, dropping to 0.60, may indicate that the company experienced challenges in generating sales revenue relative to its total assets during that period. It is important for Westlake Corporation to investigate the reasons behind this decline and take necessary steps to improve asset utilization efficiency.
Overall, Westlake Corporation's total asset turnover ratio has exhibited variability, suggesting potential fluctuations in the company's operational efficiency and effectiveness in utilizing its asset base to generate revenue over the analyzed period. Monitoring and analyzing this ratio over time can provide valuable insights into the company's operational performance and financial health.
Peer comparison
Dec 31, 2023