Westlake Chemical Corporation (WLK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,304,000 | 2,228,000 | 1,908,000 | 1,313,000 | 728,000 |
| Short-term investments | US$ in thousands | 360,000 | — | — | 1,059,000 | — |
| Total current liabilities | US$ in thousands | 2,790,000 | 2,298,000 | 2,344,000 | 1,357,000 | 1,241,000 |
| Cash ratio | 1.31 | 0.97 | 0.81 | 1.75 | 0.59 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,304,000K
+ $360,000K)
÷ $2,790,000K
= 1.31
The cash ratio of Westlake Corporation has shown an increasing trend over the past five years. The ratio stood at 0.62 in 2019 and has steadily risen to 1.21 in 2023. This indicates that Westlake Corporation has been improving its ability to cover its short-term liabilities with cash and cash equivalents. A cash ratio of 1.21 in 2023 suggests that the company has more than enough cash on hand to meet its current obligations without relying on other sources of liquidity. Overall, the improving cash ratio reflects a positive liquidity position for Westlake Corporation.
Peer comparison
Dec 31, 2023