Westlake Chemical Corporation (WLK)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 728,000 | 1,437,000 | 409,000 | 445,000 |
| Short-term investments | US$ in thousands | 360,000 | — | — | — | — | — | — | — | — | 1,010,000 | 1,009,000 | 1,029,000 | 1,059,000 | 1,046,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 1,036,000 | 1,094,000 | 1,213,000 | 1,121,000 |
| 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 |
| Quick ratio | 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 | 1.42 | 2.04 | 1.29 | 1.28 |
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 shown a fluctuating trend over the past eight quarters. The quick ratio, which measures the company's ability to cover its short-term liabilities with its most liquid assets, ranged from a low of 1.38 in Q1 2022 to a high of 2.17 in Q2 2023.
In general, a quick ratio above 1 indicates that the company has an adequate amount of liquid assets to cover its short-term liabilities. Westlake Corporation consistently maintained a quick ratio above 1 throughout the periods analyzed, reflecting a strong liquidity position.
The quick ratio peaked at 2.17 in Q2 2023, which indicates a significant increase in the company's ability to meet its short-term obligations with its quick assets. This could be attributed to an increase in cash or cash equivalents relative to current liabilities during that period.
Overall, the fluctuating trend in the quick ratio suggests some variability in the company's liquidity position. It is essential for Westlake Corporation to continue monitoring and managing its liquidity effectively to ensure it can meet its short-term obligations as they come due.
Peer comparison
Dec 31, 2023