Westlake Chemical Corporation (WLK)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,556,000 | 4,607,000 | 4,879,000 | 4,911,000 | 3,566,000 |
| Total assets | US$ in thousands | 20,750,000 | 21,035,000 | 20,550,000 | 18,459,000 | 13,835,000 |
| Debt-to-assets ratio | 0.22 | 0.22 | 0.24 | 0.27 | 0.26 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,556,000K ÷ $20,750,000K
= 0.22
The debt-to-assets ratio of Westlake Chemical Corporation has shown a relatively stable and healthy trend over the 5-year period from December 31, 2020, to December 31, 2024. The ratio decreased from 0.26 in 2020 to 0.22 in 2024, indicating that the company has become more efficient in managing its debt in proportion to its total assets.
A lower debt-to-assets ratio suggests that the company is relying less on debt financing and has a stronger capacity to cover its obligations with its existing assets. This can be seen as a positive sign, as it indicates lower financial risk and greater financial stability for Westlake Chemical Corporation.
Overall, the consistent decrease in the debt-to-assets ratio over the years reflects prudent financial management on the part of the company, which may enhance its creditworthiness and investment attractiveness in the eyes of stakeholders.
Peer comparison
Dec 31, 2024