Westlake Chemical Corporation (WLK)

Working capital 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 current assets	US$ in thousands	6,214,000	6,609,000	5,973,000	5,263,000	3,477,000
Total current liabilities	US$ in thousands	2,219,000	2,790,000	2,298,000	2,344,000	1,357,000
Working capital turnover		3.04	3.29	4.30	4.03	3.54

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,142,000K ÷ ($6,214,000K – $2,219,000K)
= 3.04

Based on the data provided for Westlake Chemical Corporation's working capital turnover, we observe fluctuations in this ratio over the five-year period.

In December 31, 2020, the working capital turnover was 3.54, indicating that the company generated $3.54 of revenue for every dollar of working capital invested.

By December 31, 2021, the working capital turnover improved to 4.03, suggesting that the company became more efficient in utilizing its working capital to generate revenue.

This positive trend continued through December 31, 2022, where the working capital turnover further increased to 4.30, demonstrating an even higher efficiency in managing working capital.

However, there was a notable decline in the working capital turnover by December 31, 2023, dropping to 3.29. This decrease may suggest potential challenges in managing working capital efficiently during that period.

By December 31, 2024, the working capital turnover decreased further to 3.04, indicating the company's potential struggles in generating revenue relative to its working capital investment.

Overall, while the working capital turnover ratios fluctuated over the five-year period, it is essential for Westlake Chemical Corporation to carefully assess and enhance its working capital management strategies to sustain and improve operational efficiency and profitability.