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.