Westlake Chemical Corporation (WLK)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	2,219,000	4,073,000	3,495,000	1,023,000	1,260,000
Revenue	US$ in thousands	12,548,000	15,794,000	11,778,000	7,504,000	8,118,000
Gross profit margin		17.68%	25.79%	29.67%	13.63%	15.52%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,219,000K ÷ $12,548,000K
= 17.68%

The gross profit margin of Westlake Corporation has fluctuated over the past five years, indicating changes in its efficiency in generating profit from its revenue. The trend shows a decline from 29.67% in 2021 to 17.68% in 2023. The decrease in the gross profit margin may suggest an increase in the cost of goods sold relative to revenue, impacting the company's profitability. It is important for Westlake Corporation to further analyze the factors influencing these changes in order to implement strategies to improve its gross profit margin in the future.