Westlake Chemical Corporation (WLK)

Current 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
Total current assets	US$ in thousands	6,609,000	6,757,000	6,296,000	6,146,000	5,973,000	6,101,000	6,013,000	5,405,000	5,263,000	6,435,000	4,445,000	3,734,000	3,477,000	3,381,000	3,165,000	3,768,000	2,742,000	3,482,000	2,595,000	2,627,000
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
Current ratio		2.37	2.54	2.95	2.85	2.60	2.48	2.39	2.12	2.25	3.39	2.99	2.82	2.56	2.78	2.85	3.68	2.21	2.81	2.07	2.14

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 been fluctuating over the past eight quarters, ranging from 2.12 to 2.95. Generally, a current ratio above 2 indicates that the company has more current assets than current liabilities, suggesting a healthy liquidity position and ability to meet short-term obligations.

The current ratio peaked at 2.95 in Q2 2023, reflecting a significant increase in current assets in relation to current liabilities. This may indicate efficient management of working capital and a strong financial position during that period.

Conversely, the lowest current ratio of 2.12 in Q1 2022 suggests a relatively tighter liquidity position, although still above the acceptable threshold of 2. This quarter may have required closer monitoring of cash flow and working capital management to ensure timely payment of obligations.

Overall, the fluctuation in the current ratio of Westlake Corporation indicates varying levels of liquidity over the analyzed periods, with particular strengths and areas for improvement identified in different quarters.