Westlake Chemical Corporation (WLK)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	822,000	1,681,000	1,815,000	2,583,000	3,073,000	3,615,000	3,947,000	3,486,000	2,798,000	2,104,000	1,322,000	642,000	430,000	345,000	505,000	655,000	653,000	756,000	926,000	1,142,000
Interest expense (ttm)	US$ in thousands	165,000	167,000	171,000	173,000	177,000	180,000	197,000	189,000	176,000	164,000	140,000	144,000	142,000	143,000	137,000	125,000	124,000	119,000	116,000	119,000
Interest coverage		4.98	10.07	10.61	14.93	17.36	20.08	20.04	18.44	15.90	12.83	9.44	4.46	3.03	2.41	3.69	5.24	5.27	6.35	7.98	9.60

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $822,000K ÷ $165,000K
= 4.98

Westlake Corporation's interest coverage ratio has shown a declining trend over the past eight quarters. The ratio has decreased from 18.61 in Q1 2022 to 7.47 in Q4 2023, indicating a potential deterioration in the company's ability to meet its interest payment obligations from its operating income. The decreasing trend may raise concerns about the company's financial health and its ability to service its debt effectively. It is essential for stakeholders to closely monitor this trend and assess the company's overall financial stability and risk management strategies.