Westlake Chemical Corporation (WLK)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 10,527,000 | 10,241,000 | 9,931,000 | 7,955,000 | 6,043,000 |
| Debt-to-capital ratio | 0.30 | 0.31 | 0.33 | 0.38 | 0.37 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,556,000K ÷ ($4,556,000K + $10,527,000K)
= 0.30
The debt-to-capital ratio of Westlake Chemical Corporation has been relatively stable over the past five years, decreasing from 0.37 in 2020 to 0.30 in 2024. This indicates that the company has a moderate level of debt compared to its total capital structure. A decreasing trend in the debt-to-capital ratio suggests that Westlake Chemical has been reducing its reliance on debt to finance its operations while strengthening its capital base. Overall, the company's debt levels appear to be manageable, which can positively impact its financial stability and ability to meet its obligations in the long term.
Peer comparison
Dec 31, 2024