Westlake Chemical Corporation (WLK)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,556,000 | 4,616,000 | 4,585,000 | 4,590,000 | 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 |
| Total assets | US$ in thousands | 20,750,000 | 21,109,000 | 21,083,000 | 20,960,000 | 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 |
| Debt-to-assets ratio | 0.22 | 0.22 | 0.22 | 0.22 | 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 |
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 declining trend from 0.31 as of March 31, 2020, to 0.22 as of December 31, 2024. This indicates that the company has been effectively managing its debt levels relative to its total assets over this period. A decreasing trend in the debt-to-assets ratio is generally viewed positively by investors and lenders, as it suggests that the company's financial risk is decreasing.
However, it is worth noting that there was a slight increase in the ratio from 0.21 as of September 30, 2023, to 0.22 as of December 31, 2023, and this ratio remained constant at 0.22 for several subsequent quarters. This stability in the ratio may indicate that the company is maintaining an optimal level of debt in relation to its asset base.
Overall, the consistent decrease in the debt-to-assets ratio of Westlake Chemical Corporation reflects a prudent approach to managing debt and enhancing financial stability. Investors and stakeholders may view this trend favorably as it indicates a strengthening financial position and reduced risk of financial distress.
Peer comparison
Dec 31, 2024