Westlake Chemical Corporation (WLK)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 728,000 | 1,437,000 | 409,000 | 445,000 |
| Short-term investments | US$ in thousands | 360,000 | — | — | — | — | — | — | — | — | 1,010,000 | 1,009,000 | 1,029,000 | 1,059,000 | 1,046,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 1,241,000 | 1,238,000 | 1,254,000 | 1,226,000 |
| Cash ratio | 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 | 0.59 | 1.16 | 0.33 | 0.36 |
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 a consistent improvement over the past eight quarters, indicating the company's increasing ability to cover its short-term liabilities with available cash and cash equivalents.
Starting from Q1 2022 with a cash ratio of 0.46, the ratio steadily increased to reach 1.21 in Q4 2023. This upward trend suggests that Westlake has managed its cash resources effectively and may have enhanced liquidity management practices during this period.
The company's cash ratio surpassed 1.00 in Q4 2022, indicating that it had enough cash on hand to cover its current liabilities fully. This strong liquidity position continued to strengthen in subsequent quarters, reaching 1.30 in Q2 2023 and remaining above 1.00 in the following quarters.
Overall, Westlake Corporation's improving cash ratio reflects a healthy liquidity position and a strengthened ability to meet its short-term obligations through available cash reserves.
Peer comparison
Dec 31, 2023