Westlake Chemical Corporation (WLK)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 10,527,000 | 10,662,000 | 10,574,000 | 10,331,000 | 10,241,000 | 10,754,000 | 10,544,000 | 10,291,000 | 9,931,000 | 9,621,000 | 9,404,000 | 8,681,000 | 7,955,000 | 7,298,000 | 6,771,000 | 6,261,000 | 6,043,000 | 5,949,000 | 5,901,000 | 5,893,000 |
| Debt-to-capital ratio | 0.30 | 0.30 | 0.30 | 0.31 | 0.31 | 0.30 | 0.32 | 0.32 | 0.33 | 0.33 | 0.34 | 0.36 | 0.38 | 0.40 | 0.34 | 0.36 | 0.37 | 0.38 | 0.39 | 0.43 |
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 shown a declining trend over the past few years, indicating an improvement in the company's overall financial leverage. As of December 31, 2024, the debt-to-capital ratio stands at 0.30, suggesting that 30% of the company's capital structure is funded by debt. This demonstrates a conservative approach to financing, as the company relies more on equity to support its operations.
The decreasing trend in the debt-to-capital ratio from 0.43 in March 2020 to 0.30 in December 31, 2024, indicates that Westlake Chemical has been effectively managing its debt levels relative to its total capital. A lower debt-to-capital ratio signifies a reduced financial risk and a stronger financial position for the company.
Overall, the decreasing debt-to-capital ratio reflects positively on Westlake Chemical Corporation's financial health and indicates a prudent debt management strategy, providing stability and resilience to the company's capital structure.
Peer comparison
Dec 31, 2024