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WestRock Co (WestRock Co) Gross Margin % : 16.50% (As of Mar. 2024)


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What is WestRock Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. WestRock Co's Gross Profit for the three months ended in Mar. 2024 was $780 Mil. WestRock Co's Revenue for the three months ended in Mar. 2024 was $4,727 Mil. Therefore, WestRock Co's Gross Margin % for the quarter that ended in Mar. 2024 was 16.50%.

Warning Sign:

WestRock Co gross margin has been in long-term decline. The average rate of decline per year is -2.9%.


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

WRK' s Gross Margin % Range Over the Past 10 Years
Min: 17.65   Med: 19.07   Max: 20.64
Current: 17.67


During the past 13 years, the highest Gross Margin % of WestRock Co was 20.64%. The lowest was 17.65%. And the median was 19.07%.

WRK's Gross Margin % is ranked worse than
64.42% of 371 companies
in the Packaging & Containers industry
Industry Median: 21.58 vs WRK: 17.67

WestRock Co had a gross margin of 16.50% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for WestRock Co was -2.90% per year.


WestRock Co Gross Margin % Historical Data

The historical data trend for WestRock Co'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.

WestRock Co Gross Margin % Chart

WestRock Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.50 18.19 18.27 18.91 17.65

WestRock Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial 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 17.44 19.95 17.59 16.42 16.50

Competitive Comparison of WestRock Co's Gross Margin %

For the Packaging & Containers subindustry, WestRock Co'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.


WestRock Co's Gross Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, WestRock Co's Gross Margin % distribution charts can be found below:

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



WestRock Co Gross Margin % Calculation

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

WestRock Co's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=3584.5 / 20310
=(Revenue - Cost of Goods Sold) / Revenue
=(20310 - 16725.5) / 20310
=17.65 %

WestRock Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=780.1 / 4726.7
=(Revenue - Cost of Goods Sold) / Revenue
=(4726.7 - 3946.6) / 4726.7
=16.50 %

* 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.


WestRock Co  (NYSE:WRK) 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

WestRock Co had a gross margin of 16.50% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage


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.


WestRock Co Gross Margin % Related Terms

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


WestRock Co (WestRock Co) Business Description

Traded in Other Exchanges
Address
1000 Abernathy Road, North East, Atlanta, GA, USA, 30328
WestRock manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. After the merger of RockTenn and MeadWestvaco in fall 2015, WestRock became the largest North American producer of solid bleached sulfate and the second-largest producer of containerboard, which is used in the production of shipping containers.
Executives
Currey M Russell director PO BOX 4098, NORCROSS GA 30091
John L O'neal officer: President, Global Paper 1155 PERIMETER CENTER WEST, ATLANTA GA 30338
James E Nevels director C/O TASTY BAKING COMPANY, NAVY YARD CORP. CTR., THREE CRESCENT DR., PHILADELPHIA PA 19112
Samuel W. Shoemaker officer: President, Consumer Packaging 1000 ABERNATHY ROAD NE, SUITE 125, ATLANTA GA 30328
Dmitri L Stockton director 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902
Thomas Stigers officer: President, Mill Operations 1000 ABERNATHY ROAD NE, SUITE 125, ATLANTA GA 30328
Denise R Singleton officer: EVP, GC and Secretary 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Jean Savage director 14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
David B Sewell officer: Chief Executive Officer 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Alexander W Pease officer: Chief Financial Officer 5605 CARNEGIE BOULEVARD, SUTIE 500, CHARLOTTE NC 28209
Patrick M. Kivits officer: Pres, Consumer PKG 1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Peter C Durette officer: President, Corrugated Pkg. MEADWESTVACO, 501 SOUTH 5TH STREET, RICHMOND VA 23219-0501
Jeffrey Wayne Chalovich officer: President - Corrugated Pkging 504 THRASHER STREET, NORCROSS GA 30071
Steven C Voorhees director, officer: CEO - President 214 N TRYON STREET, CHARLOTTE NC 28202
Patrick Edward Lindner officer: President, Consumer Packaging 501 SOUTH 5TH STREET, RICHMOND VA 23219