Westlake Chemical Corporation (WLK)
Debt-to-equity 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-equity ratio | 0.45 | 0.43 | 0.46 | 0.48 | 0.49 | 0.50 | 0.52 | 0.56 | 0.62 | 0.68 | 0.53 | 0.57 | 0.59 | 0.62 | 0.63 | 0.75 | 0.59 | 0.59 | 0.47 | 0.47 |
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 relatively stable trend over the past eight quarters, fluctuating between 0.45 to 0.60. The ratio indicates the proportion of the company's total debt in relation to its shareholders' equity, with lower values suggesting a lesser reliance on debt financing.
In the most recent quarter, Q4 2023, the debt-to-equity ratio was 0.48, which represents a moderate level of debt compared to equity. This figure suggests that the company is utilizing a balanced mix of debt and equity to finance its operations.
Despite some variability, the debt-to-equity ratio has generally remained within a reasonable range over the past two years. A gradual decline in the ratio from 0.60 in Q1 2022 to 0.48 in Q4 2023 indicates a potential improvement in the company's financial leverage and risk management.
Overall, the consistent monitoring and management of the debt-to-equity ratio suggest that Westlake Corporation has been prudent in its capital structure decisions, balancing the benefits of debt financing with the risks associated with higher leverage.
Peer comparison
Dec 31, 2023