Westlake Chemical Corporation (WLK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,919,000 | 2,915,000 | 3,042,000 | 3,108,000 | 3,304,000 | 3,057,000 | 2,677,000 | 2,414,000 | 2,228,000 | 1,778,000 | 1,317,000 | 1,055,000 | 1,908,000 | 3,571,000 | 1,844,000 | 1,393,000 | 1,313,000 | 1,217,000 | 1,109,000 | 1,537,000 |
| Short-term investments | US$ in thousands | 1,009,000 | 874,000 | 530,000 | 544,000 | 360,000 | — | — | — | — | — | — | — | — | 1,010,000 | 1,009,000 | 1,029,000 | 1,059,000 | 1,046,000 | — | — |
| Total current liabilities | US$ in thousands | 2,219,000 | 2,351,000 | 2,537,000 | 2,655,000 | 2,790,000 | 2,659,000 | 2,131,000 | 2,159,000 | 2,298,000 | 2,461,000 | 2,513,000 | 2,550,000 | 2,344,000 | 1,898,000 | 1,485,000 | 1,326,000 | 1,357,000 | 1,218,000 | 1,109,000 | 1,024,000 |
| Cash ratio | 1.77 | 1.61 | 1.41 | 1.38 | 1.31 | 1.15 | 1.26 | 1.12 | 0.97 | 0.72 | 0.52 | 0.41 | 0.81 | 2.41 | 1.92 | 1.83 | 1.75 | 1.86 | 1.00 | 1.50 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,919,000K
+ $1,009,000K)
÷ $2,219,000K
= 1.77
The cash ratio is a liquidity ratio that measures a company's ability to pay off its short-term liabilities using its cash and cash equivalents. It is calculated by dividing the cash and cash equivalents by the current liabilities.
Based on the provided data for Westlake Chemical Corporation, the cash ratio has fluctuated over the quarters from March 2020 to December 2024. The cash ratio started at 1.50 in March 2020 and showed a decline reaching its lowest point of 0.41 in March 2022. This decline indicates that the company may have had challenges in maintaining sufficient cash to cover its short-term obligations during that period.
However, from March 2022 onwards, the cash ratio started to improve gradually, reaching 1.77 by December 2024. This uptrend suggests that the company enhanced its liquidity position, enabling it to better meet its short-term financial obligations with its available cash reserves.
Overall, the increasing trend in the cash ratio from 2022 onwards indicates a positive development in Westlake Chemical Corporation's liquidity position, potentially attributed to improved cash management practices or stronger cash generation capabilities. Maintaining an adequate cash ratio is crucial for companies to ensure financial stability and meet unexpected financial needs effectively.
Peer comparison
Dec 31, 2024