Westlake Chemical Corporation (WLK)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.80 | 2.37 | 2.60 | 2.25 | 2.56 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,214,000K ÷ $2,219,000K
= 2.80
Westlake Chemical Corporation's current ratio has exhibited some fluctuations over the past five years. As of December 31, 2020, the current ratio was strong at 2.56, indicating that the company had $2.56 in current assets for every $1 in current liabilities, reflecting good liquidity.
However, by December 31, 2021, the current ratio had decreased to 2.25, suggesting a slight decline in liquidity compared to the previous year. The ratio then improved to 2.60 by December 31, 2022, indicating that the company's ability to meet its short-term obligations had strengthened.
Subsequently, as of December 31, 2023, the current ratio dropped to 2.37, showing a slight decrease in liquidity. However, by December 31, 2024, the current ratio increased significantly to 2.80, reflecting a notable improvement in the company's liquidity position.
Overall, Westlake Chemical Corporation has maintained a healthy current ratio over the five-year period, with some variations indicating fluctuations in its short-term liquidity position. It is important for the company to continue monitoring its current ratio to ensure it has sufficient current assets to cover its current liabilities effectively.
Peer comparison
Dec 31, 2024