Westlake Chemical Corporation (WLK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,304,000 | 2,228,000 | 1,908,000 | 1,313,000 | 728,000 |
| Short-term investments | US$ in thousands | 360,000 | — | — | 1,059,000 | — |
| Receivables | US$ in thousands | 1,601,000 | 1,801,000 | 1,868,000 | 1,214,000 | 1,036,000 |
| Total current liabilities | US$ in thousands | 2,790,000 | 2,298,000 | 2,344,000 | 1,357,000 | 1,241,000 |
| Quick ratio | 1.89 | 1.75 | 1.61 | 2.64 | 1.42 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,304,000K
+ $360,000K
+ $1,601,000K)
÷ $2,790,000K
= 1.89
The quick ratio of Westlake Corporation has been relatively stable over the past five years, ranging from 1.46 to 1.89. In 2023 and 2022, the quick ratio stood at 1.79, indicating that the company had $1.79 in liquid assets available to cover each $1 of current liabilities. This suggests that Westlake Corporation has a comfortable level of liquidity to meet its short-term obligations. However, when compared to previous years, the quick ratio was higher in 2020 at 1.89, indicating a stronger liquidity position at that time. In contrast, the lowest quick ratio in the period was observed in 2019 at 1.46, signaling a potential liquidity concern. Overall, the consistent quick ratio values above 1.5 indicate that Westlake Corporation has been maintaining a healthy liquidity position over the years, although there have been fluctuations in comparison to prior periods.
Peer comparison
Dec 31, 2023