Air Products and Chemicals, Inc. stock research
FY2024 Q1
Air Products and Chemicals (APD) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased while cost of revenue declined at a faster pace, resulting in a lower gross profit but an improved gross margin. Compared with the prior quarter, gross margin was slightly higher; versus the same quarter last year, it was notably higher.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue decreased while cost of revenue declined at a faster pace, resulting in a lower gross profit but an improved gross margin. Compared with the prior quarter, gross margin was slightly higher; versus the same quarter last year, it was notably higher.
- The gross margin improvement was primarily associated with a larger proportional decrease in cost of revenue compared to revenue.
- Sequentially, revenue and gross profit were lower, but gross margin improved. On a year-over-year basis, revenue was lower, gross profit was higher, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.0%
Gross profit
$930.2M
Revenue
$3.0B
Cost of revenue
$2.1B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+2.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.2B | $917.3M | $2.3B | 28.7% |
| Jun 30, 2023 | $3.0B | $963.2M | $2.1B | 31.7% |
| Sep 30, 2023 | $3.2B | $984.1M | $2.2B | 30.8% |
| Dec 31, 2023 | $3.0B | $930.2M | $2.1B | 31.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.2 pts
Year-over-year change
Dec 31, 2022
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was primarily associated with a larger proportional decrease in cost of revenue compared to revenue.
Sequentially, revenue and gross profit were lower, but gross margin improved. On a year-over-year basis, revenue was lower, gross profit was higher, and gross margin strengthened.
Monitor whether the trend of cost of revenue declining more than revenue can be sustained.