Westlake Chemical Corporation (WLK)
Total asset 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 |
| Total assets | US$ in thousands | 20,750,000 | 21,035,000 | 20,550,000 | 18,459,000 | 13,835,000 |
| Total asset turnover | 0.59 | 0.60 | 0.77 | 0.64 | 0.54 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,142,000K ÷ $20,750,000K
= 0.59
Westlake Chemical Corporation's total asset turnover has exhibited fluctuations over the five-year period from 2020 to 2024. The ratio increased from 0.54 in 2020 to 0.64 in 2021, showing an improvement in the company's ability to generate revenue from its total assets. This increase continued in 2022, reaching 0.77, indicating that Westlake Chemical was generating $0.77 in revenue for every dollar of assets owned.
However, there was a slight decline in the total asset turnover in 2023, dropping to 0.60, which may suggest a potential inefficiency in asset utilization during that period. In 2024, the ratio further decreased to 0.59, indicating a slight decrease in the company's ability to generate revenue from its assets compared to the previous year.
Overall, while there have been fluctuations in Westlake Chemical Corporation's total asset turnover, the trend indicates some variability in the company's efficiency in generating revenue from its total assets over the five-year period. Further analysis of the underlying factors contributing to these fluctuations would be necessary to determine the key drivers behind the changes in total asset turnover.
Peer comparison
Dec 31, 2024