Westlake Chemical Corporation (WLK)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,607,000 | 4,879,000 | 4,911,000 | 3,566,000 | 3,445,000 |
| Total assets | US$ in thousands | 21,035,000 | 20,550,000 | 18,459,000 | 13,835,000 | 13,261,000 |
| Debt-to-assets ratio | 0.22 | 0.24 | 0.27 | 0.26 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,607,000K ÷ $21,035,000K
= 0.22
The debt-to-assets ratio of Westlake Corporation has shown a fluctuating trend over the past five years. It decreased from 0.26 in 2019 to 0.23 in 2023, indicating a reduction in the proportion of debt relative to total assets. However, there was a slight increase in this ratio in the following years, reaching 0.24 in 2022, and further rising to 0.28 in 2021 before declining back to 0.26 in 2020.
The overall trend suggests that Westlake Corporation has been managing its debt levels in relation to its total assets, although there have been fluctuations in the ratio over the years. A lower debt-to-assets ratio indicates a lower reliance on debt financing, which can be seen as a positive sign for the company's financial stability and risk management. However, it is essential to consider other financial metrics and industry benchmarks to gain a more comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023