Westlake Chemical Corporation (WLK)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,214,000 | 6,549,000 | 6,609,000 | 6,526,000 | 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 |
| 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 |
| Current ratio | 2.80 | 2.79 | 2.61 | 2.46 | 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 |
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 fluctuations over the past few years, ranging from a low of 2.12 on March 31, 2022, to a high of 3.68 on March 31, 2020. A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities, providing a buffer for short-term obligations.
The trend in the current ratio shows some variability, with periods of increase and decrease. The current ratio decreased from 3.68 on March 31, 2020, to 2.56 on December 31, 2020, indicating a potential decrease in liquidity. However, there was a subsequent improvement in liquidity as the current ratio increased to 3.39 on September 30, 2021.
Despite some fluctuations, the current ratio generally stayed above 2 in the later periods, reflecting a healthy liquidity position for the company. A current ratio above 2 suggests that Westlake Chemical Corporation has a strong ability to meet its short-term obligations using its current assets.
It is important for investors and stakeholders to continue monitoring the current ratio to assess the company's liquidity and ability to cover short-term liabilities. fluctuations in the current ratio should be further analyzed in conjunction with other financial metrics to gain a comprehensive understanding of Westlake Chemical Corporation's financial health.
Peer comparison
Dec 31, 2024