Westlake Chemical Corporation (WLK)

Solvency ratios

	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
Debt-to-assets ratio	0.22	0.21	0.23	0.24	0.24	0.24	0.24	0.25	0.27	0.29	0.24	0.25	0.26	0.27	0.28	0.31	0.26	0.26	0.22	0.22
Debt-to-capital ratio	0.31	0.30	0.32	0.32	0.33	0.33	0.34	0.36	0.38	0.40	0.34	0.36	0.37	0.38	0.39	0.43	0.37	0.37	0.32	0.32
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
Financial leverage ratio	2.05	1.99	1.99	2.02	2.07	2.12	2.17	2.27	2.32	2.34	2.17	2.24	2.29	2.30	2.30	2.40	2.26	2.25	2.14	2.15

The solvency ratios of Westlake Corporation indicate the company's ability to meet its long-term debt obligations and sustain its operations.

The debt-to-assets ratio has remained relatively stable around 0.23 to 0.24 throughout the year, suggesting that the company is utilizing a moderate level of debt to finance its assets.

The debt-to-capital ratio has also shown consistency, hovering between 0.31 to 0.33, indicating that a moderate portion of the company's capital structure is funded by debt.

The debt-to-equity ratio has exhibited a downward trend, declining from 0.60 in Q1 2022 to 0.48 in Q4 2023. This indicates that the company is relying less on debt and more on equity to finance its operations, which could reduce financial risk.

The financial leverage ratio has shown a declining trend from 2.27 in Q1 2022 to 2.05 in Q4 2023. This suggests that the company's reliance on debt to fund its operations has decreased over the past year, potentially improving its financial stability and flexibility.

Overall, the solvency ratios of Westlake Corporation suggest a prudent approach to managing debt levels and financial risk, with a gradual shift towards a more balanced capital structure.

Coverage ratios

	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
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

Westlake Corporation's interest coverage has shown a decreasing trend over the past four quarters, from 17.42 in Q4 2022 to 7.47 in Q4 2023. This indicates that the company's ability to meet its interest obligations out of its operating income has weakened during this period. However, it is important to note that even the lowest interest coverage ratio of 7.47 in Q4 2023 is still considered adequate, as a ratio above 2 generally suggests that a company is generating enough operating income to cover its interest expenses. Despite the decline, Westlake Corporation's interest coverage remains relatively strong and stable over the analyzed period.