Westlake Chemical Corporation (WLK)
Total asset 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 |
| Total assets | US$ in thousands | 20,750,000 | 21,109,000 | 21,083,000 | 20,960,000 | 21,035,000 | 21,396,000 | 20,981,000 | 20,806,000 | 20,550,000 | 20,425,000 | 20,372,000 | 19,741,000 | 18,459,000 | 17,108,000 | 14,719,000 | 14,050,000 | 13,835,000 | 13,694,000 | 13,555,000 | 14,163,000 |
| Total asset turnover | 0.59 | 0.57 | 0.58 | 0.58 | 0.60 | 0.61 | 0.66 | 0.73 | 0.77 | 0.78 | 0.74 | 0.68 | 0.64 | 0.60 | 0.62 | 0.56 | 0.54 | 0.54 | 0.56 | 0.57 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $12,142,000K ÷ $20,750,000K
= 0.59
Total asset turnover measures how effectively a company utilizes its assets to generate revenue. A higher total asset turnover ratio indicates that the company is efficiently using its assets to generate sales.
Based on the data provided for Westlake Chemical Corporation, the total asset turnover ratio has been relatively stable over the analyzed period, ranging from 0.54 to 0.78. The trend shows a gradual increase from 0.54 in September 2020 to a peak of 0.78 in September 2022, before slightly decreasing to 0.57 by December 2024.
This indicates that Westlake Chemical Corporation has been improving its efficiency in generating sales from its assets over time, with a notable peak in asset turnover in September 2022. However, the slight decline towards the end of the period may signal a potential decrease in asset utilization efficiency.
It is essential for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's operational efficiency and asset management strategy effectively.
Peer comparison
Dec 31, 2024