Westlake Chemical Corporation (WLK)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	5,860,000	5,824,000	5,719,000	5,632,000
Debt-to-capital ratio		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	0.37	0.37	0.32	0.32

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 for Westlake Corporation has been relatively stable over the past eight quarters, ranging from 0.31 to 0.37. This ratio measures the proportion of the company's total debt to its total capital, including both debt and equity. A decreasing trend in the debt-to-capital ratio may indicate a reduction in the company's reliance on debt financing, which could be seen as positive from a risk perspective. Conversely, an increasing trend may suggest a higher level of leverage and potential financial risk. In the case of Westlake Corporation, the ratio has been hovering around 0.32 to 0.34, indicating a consistent level of debt utilization relative to its total capital structure over the past two years. This stability suggests a balanced mix of debt and equity in the company's capital structure, which may be viewed as a prudent approach to financing its operations.