Westlake Chemical Corporation (WLK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,609,000 | 5,973,000 | 5,263,000 | 3,477,000 | 2,742,000 |
| Total current liabilities | US$ in thousands | 2,790,000 | 2,298,000 | 2,344,000 | 1,357,000 | 1,241,000 |
| Current ratio | 2.37 | 2.60 | 2.25 | 2.56 | 2.21 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,609,000K ÷ $2,790,000K
= 2.37
The current ratio of Westlake Corporation has exhibited some fluctuations over the past five years. In 2023, the current ratio stands at 2.37, a decrease from the previous year's ratio of 2.60. This indicates that for every dollar of liabilities due within the next year, the company has $2.37 of current assets available to cover those obligations.
Comparing to historical data, the current ratio in 2023 is lower than the ratios in 2022 and 2020 but higher than those in 2021 and 2019. The decreasing trend from 2022 to 2023 may suggest a potential decrease in the company's liquidity position or its ability to meet short-term obligations.
Overall, while the current ratio of Westlake Corporation appears to have fluctuated in recent years, it remains above 2.0 in each period, indicating that the company has generally maintained a healthy level of liquidity and current assets to cover its short-term liabilities.
Peer comparison
Dec 31, 2023