Westlake (Westlake) Gross Margin %

: 7.04% (As of Dec. 2023)

View and export this data going back to 2004. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Westlake's Gross Profit for the three months ended in Dec. 2023 was $199 Mil. Westlake's Revenue for the three months ended in Dec. 2023 was $2,826 Mil. Therefore, Westlake's Gross Margin % for the quarter that ended in Dec. 2023 was 7.04%.

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: 17.68

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 worse than
63.55% of 1509 companies
in the Chemicals industry
Industry Median: 22.32 vs WLK: 17.68

Westlake had a gross margin of 7.04% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Westlake was 2.90% 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

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

15.52

13.63

29.67

25.79

17.68

Westlake Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																17.19	23.60	19.75	18.81	7.04

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. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	2219	/	12548
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12548 - 10329)	/	12548
	=	17.68 %

Westlake's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	199	/	2826
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2826 - 2627)	/	2826
	=	7.04 %

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 7.04% for the quarter that ended in Dec. 2023 => 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.

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 (Westlake) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Westlake Corp (NYSE:WLK) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

UEO:Germany

Address

2801 Post Oak Boulevard, Suite 600, Houston, TX, USA, 77056

Website

https://www.westlake.com

Westlake Corp is a manufacturer and global supplier of chemicals, polymers and building products. Its Performance and 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 and Infrastructure Products segment produces key finished goods for building products, pipe and fittings, and global compounds businesses.

Executives

Robert F. Buesinger	officer: Sr. Vice President, Vinyls	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
David Tsung-hung Chao	director, 10 percent owner	1000 UPTOWN PARK BLVD. #34, HOUSTON TX 77056
Kimberly S Lubel	director	P.O. BOX 696000, SAN ANTONIO TX 78269-6000
Johnathan Stevan Zoeller	officer: VP and CAO	2801 POST OAK BLVD., SUITE 600, HOUSTON TX 77056
Thomas J. Janssens	officer: SVP, Ops - PEM & Corp Logistic	2801 POST OAK BLVD., SUITE 600, HOUSTON TX 77056
Catherine T. Chao	director, 10 percent owner	5815 NE 32ND AVE, PORTLAND OR 97211
Carolyn Chao Sabat	director, 10 percent owner	3019 CHEVY CHASE DR., HOUSTON TX 77019
Albert Chao	director, officer: President and CEO	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Roger L. Kearns	officer: EVP, Vinyls Chemicals	2801 POST OAK BLVD., HOUSTON TX 77056
L. Benjamin Ederington	officer: VP, General Counsel, Corp Secy	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Mark Steven Bender	officer: Vice President/Treasurer	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Lawrence E. Teel	officer: Vice President, Olefins	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Andrew Kenner	officer: VP -- Manufacturing	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Ttwfgp Llc	10 percent owner	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
George J Mangieri	officer: Vice President and Controller	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056