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Westlake Chemical Financial Strength

: 5 (As of Sep. 2021)
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Westlake Chemical has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Westlake Chemical's Interest Coverage for the quarter that ended in Sep. 2021 was 14.21. Westlake Chemical's debt to revenue ratio for the quarter that ended in Sep. 2021 was 0.46. As of today, Westlake Chemical's Altman Z-Score is 2.74.


Competitive Comparison

For the Specialty Chemicals subindustry, Westlake Chemical's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Westlake Chemical Financial Strength Distribution

For the Chemicals industry and Basic Materials sector, Westlake Chemical's Financial Strength distribution charts can be found below:

* The bar in red indicates where Westlake Chemical's Financial Strength falls into.



Westlake Chemical Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Westlake Chemical's Interest Expense for the months ended in Sep. 2021 was $-61 Mil. Its Operating Income for the months ended in Sep. 2021 was $867 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $5,321 Mil.

Westlake Chemical's Interest Coverage for the quarter that ended in Sep. 2021 is

Interest Coverage=-1*Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*867/-61
=14.21

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Westlake Chemical's Debt to Revenue Ratio for the quarter that ended in Sep. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(268 + 5321) / 12220
=0.46

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Westlake Chemical has a Z-score of 2.74, indicating it is in Grey Zones. This implies that Westlake Chemical is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.74 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Westlake Chemical  (NYSE:WLK) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Westlake Chemical has the Financial Strength Rank of 5.


Westlake Chemical Financial Strength Related Terms

Thank you for viewing the detailed overview of Westlake Chemical's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Westlake Chemical Business Description

Westlake Chemical logo
Industry
Basic Materials » Chemicals NAICS : 325110 SIC : 2869
Traded in Other Exchanges
Address
2801 Post Oak Boulevard, Suite 600, Houston, TX, USA, 77056
Westlake Chemical Corp is a vertically integrated manufacturer and marketer of basic chemicals, vinyls, polymers and building products. Its products are used for flexible and rigid packaging, automotive products, coatings, water treatment, refrigerants, residential and commercial construction and others. The company operates in the business segments of Olefins and Vinyls. The Olefins segment manufactures and markets polyethylene, styrene monomer and various ethylene co-products. The Vinyl segment manufactures and markets polyvinyl chloride, vinyl chloride monomer, ethylene dichloride, chlor-alkali, chlorinated derivative products, and ethylene. It sells products across the United States and around the world, of which a majority of the revenue is derived from the United States.
Executives
Sheets Jeffrey Wayne director 600 N. DAIRY ASHFORD HOUSTON TX 77079
Chao John Tsung-chen director, 10 percent owner 26 GRAMERCY PARK SOUTH, 7EF NEW YORK NY 10003
Chao David Tsung-hung director, 10 percent owner 1000 UPTOWN PARK BLVD. #34 HOUSTON TX 77056
Haas Marius director ONE DELL WAY ROUND ROCK TX 78682
Graff Michael J director 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Northcutt R Bruce director 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Jenkins Dorothy C director, 10 percent owner 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Lubel Kimberly S director P.O. BOX 696000 SAN ANTONIO TX 78269-6000
Mccollum Mark A director 3000 NORTH SAM HOUSTON PARKWAY E. HOUSTON TX 77002
Kearns Roger L. officer: EVP, Vinyls Chemicals 2801 POST OAK BLVD. HOUSTON TX 77056
Zoeller Johnathan Stevan officer: VP and CAO 2801 POST OAK BLVD. SUITE 600 HOUSTON TX 77056
Ttwfgp Llc 10 percent owner 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Chao Albert director, 10 percent owner, officer: President & CEO 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Kenner Andrew officer: SVP - Chemical Manufacturing 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Bender Mark Steven officer: EVP and CFO 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056

Westlake Chemical Headlines

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