Westlake Chemical Corporation (WLK)
Debt-to-equity 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-equity ratio | 0.43 | 0.45 | 0.49 | 0.62 | 0.59 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,556,000K ÷ $10,527,000K
= 0.43
The debt-to-equity ratio of Westlake Chemical Corporation has shown a general downward trend over the past five years, decreasing from 0.59 in December 2020 to 0.43 in December 2024. This indicates that the company's reliance on debt financing has been gradually declining relative to its equity financing, suggesting a stronger financial position in terms of capital structure. The decreasing trend in the debt-to-equity ratio implies that Westlake Chemical has been effectively managing its debt levels while maintaining a healthy balance between debt and equity in its capital structure. Overall, the company's decreasing debt-to-equity ratio signifies a positive financial stance and a reduced financial risk for stakeholders.
Peer comparison
Dec 31, 2024