Avient Corp (AVNT)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	892,500	855,600	855,700	875,900	882,700	927,200	947,400	975,200	1,023,200	1,059,600	1,054,200	915,200	784,300	684,700	635,000	660,600	657,200	644,800	641,500	629,100
Revenue (ttm)	US$ in thousands	3,025,600	3,616,800	3,679,400	4,170,600	4,630,600	4,533,100	4,947,900	4,877,400	4,743,500	4,556,500	4,250,500	3,627,700	3,186,800	2,848,400	2,643,400	2,938,100	3,120,000	3,295,400	3,473,000	3,484,000
Gross profit margin		29.50%	23.66%	23.26%	21.00%	19.06%	20.45%	19.15%	19.99%	21.57%	23.25%	24.80%	25.23%	24.61%	24.04%	24.02%	22.48%	21.06%	19.57%	18.47%	18.06%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $892,500K ÷ $3,025,600K
= 29.50%

The gross profit margin of Avient Corp has shown a positive trend over the past eight quarters. The company's gross profit margin has steadily increased from 22.04% in Q1 2022 to 28.40% in Q4 2023. This indicates an improvement in the company's ability to generate profit from its core operations and manage its production costs effectively.

The increase in the gross profit margin reflects positively on Avient Corp's operational efficiency and pricing strategies. It suggests that the company is able to maintain a healthy balance between generating revenues and controlling the cost of goods sold. This improvement may be attributed to various factors such as increased efficiency in production processes, better pricing strategies, or cost-saving initiatives.

Overall, the upward trend in Avient Corp's gross profit margin signals a strengthening financial performance and profitability. However, it is important for the company to sustain this positive trend and continue to focus on operational efficiency in order to drive sustainable growth and profitability in the future.