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Westlake Gross Margin %

: 31.68% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Westlake's Gross Profit for the three months ended in Mar. 2022 was $1,285 Mil. Westlake's Revenue for the three months ended in Mar. 2022 was $4,056 Mil. Therefore, Westlake's Gross Margin % for the quarter that ended in Mar. 2022 was 31.68%.


The historical rank and industry rank for Westlake's Gross Margin % or its related term are showing as below:

WLK' s Gross Margin % Range Over the Past 10 Years
Min: 13.63   Med: 22.46   Max: 29.84
Current: 31.69


During the past 13 years, the highest Gross Margin % of Westlake was 29.84%. The lowest was 13.63%. And the median was 22.46%.

WLK's Gross Margin % is ranked better than
67.19% of 1402 companies
in the Chemicals industry
Industry Median: 25.58 vs WLK: 31.69

Westlake had a gross margin of 31.68% for the quarter that ended in Mar. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Westlake was 0.90% per year.


Westlake Gross Margin % Historical Data

The historical data trend for Westlake's Gross Margin % can be seen below:

* 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.

* Premium members only.

Westlake Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.90 23.01 15.52 13.63 29.67

Westlake Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.60 30.50 33.32 31.25 31.68

Competitive Comparison

For the Specialty Chemicals subindustry, Westlake's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Chemicals industry and Basic Materials sector, Westlake's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Westlake's Gross Margin % falls into.



Westlake Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Westlake's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=3495 / 11778
=(Revenue - Cost of Goods Sold) / Revenue
=(11778 - 8283) / 11778
=29.67 %

Westlake's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=1285 / 4056
=(Revenue - Cost of Goods Sold) / Revenue
=(4056 - 2771) / 4056
=31.68 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Westlake  (NYSE:WLK) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Westlake had a gross margin of 31.68% for the quarter that ended in Mar. 2022 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Westlake Gross Margin % Related Terms

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


Westlake Business Description

Westlake 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 Corp is a manufacturer and global supplier of chemicals, polymers and building products. Its Performance & Essential Materials segment offers a wide range of essential building blocks for making products utilized in everyday living, including olefins, vinyl chemicals, polyethylene, and epoxies. Its Housing & Infrastructure Products segment produces key finished goods for building products, pipe & fittings, and global compounds businesses.
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 Headlines

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