Westlake Chemical Corporation (WLK)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 10,241,000 | 9,931,000 | 7,955,000 | 6,043,000 | 5,860,000 |
| Debt-to-capital ratio | 0.31 | 0.33 | 0.38 | 0.37 | 0.37 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,607,000K ÷ ($4,607,000K + $10,241,000K)
= 0.31
The debt-to-capital ratio of Westlake Corporation has been relatively consistent over the past five years, ranging from 0.32 to 0.39. This ratio indicates the proportion of the company's capital structure that is financed by debt.
The trend suggests that in recent years, Westlake has maintained a stable mix of debt and equity in its capital structure. A decreasing ratio could signal reduced reliance on debt financing or increased equity investment. Conversely, an increasing ratio may indicate higher levels of debt relative to total capital.
Overall, with a debt-to-capital ratio consistently below 0.5, Westlake Corporation appears to have a conservative approach to debt financing, which may denote lower financial risk and potential stability in its operations.
Peer comparison
Dec 31, 2023