Westlake Chemical Corporation (WLK)
Debt-to-equity 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-equity ratio | 0.45 | 0.49 | 0.62 | 0.59 | 0.59 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,607,000K ÷ $10,241,000K
= 0.45
The debt-to-equity ratio of Westlake Corporation has shown a declining trend over the past five years, indicating a strengthening financial position in terms of leverage. The ratio decreased from 0.59 in 2019 to 0.48 in 2023. This suggests that the company is relying less on debt financing and has been gradually increasing its equity base relative to its debt obligations. A lower debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and greater financial stability. However, it is important to consider the industry norms and specific circumstances of the company to fully assess the implications of this trend. Overall, the decreasing debt-to-equity ratio of Westlake Corporation reflects a positive development in its capital structure over the past five years.
Peer comparison
Dec 31, 2023