Westlake Chemical Corporation (WLK)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,919,000 | 2,915,000 | 3,042,000 | 3,108,000 | 3,304,000 | 3,057,000 | 2,677,000 | 2,414,000 | 2,228,000 | 1,778,000 | 1,317,000 | 1,055,000 | 1,908,000 | 3,571,000 | 1,844,000 | 1,393,000 | 1,313,000 | 1,217,000 | 1,109,000 | 1,537,000 |
| Short-term investments | US$ in thousands | 1,009,000 | 874,000 | 530,000 | 544,000 | 360,000 | — | — | — | — | — | — | — | — | 1,010,000 | 1,009,000 | 1,029,000 | 1,059,000 | 1,046,000 | — | — |
| Receivables | US$ in thousands | 1,483,000 | 1,754,000 | 1,812,000 | 1,691,000 | 1,601,000 | 1,939,000 | 1,855,000 | 1,835,000 | 1,801,000 | 2,181,000 | 2,535,000 | 2,352,000 | 1,868,000 | 1,642,000 | 1,549,000 | 1,327,000 | 1,214,000 | 1,293,000 | 1,160,000 | 1,265,000 |
| 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 |
| Quick ratio | 2.44 | 2.36 | 2.12 | 2.01 | 1.89 | 1.88 | 2.13 | 1.97 | 1.75 | 1.61 | 1.53 | 1.34 | 1.61 | 3.28 | 2.96 | 2.83 | 2.64 | 2.92 | 2.05 | 2.74 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,919,000K
+ $1,009,000K
+ $1,483,000K)
÷ $2,219,000K
= 2.44
The quick ratio of Westlake Chemical Corporation has exhibited some fluctuations over the reported periods. The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
The trend of the quick ratio for Westlake Chemical Corporation shows a fairly stable and strong liquidity position from March 2020 to March 2023, with the ratio consistently above 2, indicating that the company had more than enough quick assets to cover its current liabilities. This suggests that the company was in a healthy position to meet its short-term financial obligations without relying heavily on inventory.
However, there was a notable decline in the quick ratio in the later periods from December 2023 to December 2024, dropping below 2. This could indicate a potential weakening of the company's liquidity position, as the quick assets may be becoming less sufficient to cover its current liabilities.
It is important for Westlake Chemical Corporation to closely monitor its quick ratio moving forward to ensure it maintains an appropriate level of liquidity to meet its short-term obligations and avoid potential financial challenges.
Peer comparison
Dec 31, 2024