Westlake Chemical Corporation (WLK)

Debt-to-assets 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
Long-term debt	US$ in thousands	4,607,000	4,574,000	4,894,000	4,892,000	4,879,000	4,813,000	4,858,000	4,902,000	4,911,000	4,929,000	3,555,000	3,547,000	3,566,000	3,681,000	3,745,000	4,432,000	3,445,000	3,424,000	2,669,000	2,669,000
Total assets	US$ in thousands	21,035,000	21,396,000	20,981,000	20,806,000	20,550,000	20,425,000	20,372,000	19,741,000	18,459,000	17,108,000	14,719,000	14,050,000	13,835,000	13,694,000	13,555,000	14,163,000	13,261,000	13,107,000	12,216,000	12,104,000
Debt-to-assets ratio		0.22	0.21	0.23	0.24	0.24	0.24	0.24	0.25	0.27	0.29	0.24	0.25	0.26	0.27	0.28	0.31	0.26	0.26	0.22	0.22

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 remained relatively stable over the past eight quarters, ranging between 0.23 and 0.26. A lower debt-to-assets ratio suggests that the company relies less on debt financing to fund its operations and investments, which can be reassuring for investors and creditors as it indicates lower financial risk.

Westlake Corporation's consistent debt-to-assets ratio may signify a well-managed balance between debt and assets, indicating prudent financial management practices. The slight increase in the ratio from Q1 2022 to Q1 2023 could be a result of increased debt relative to the company's assets during that period.

Overall, a debt-to-assets ratio in the range observed for Westlake Corporation suggests a moderate level of leverage and a healthy financial position, but it would be necessary to consider additional financial metrics and industry norms for a more comprehensive assessment of the company's financial health.