Baxter International Inc. stock research
FY2023 Q3
Baxter International (BAX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue is lower than the preceding period and the same period one year earlier, while gross profit is higher and cost of revenue is higher. As a result, gross margin has improved substantially compared to both prior periods, with gross profit exceeding revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue is lower than the preceding period and the same period one year earlier, while gross profit is higher and cost of revenue is higher. As a result, gross margin has improved substantially compared to both prior periods, with gross profit exceeding revenue.
- The margin is driven by the unusual relationship where gross profit exceeds revenue, which is a departure from typical financial patterns.
- Compared to the immediately preceding period, revenue is lower, gross profit is higher, and cost of revenue is higher, leading to an improved gross margin. The same directional pattern holds when compared to the same period one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
160.4%
Gross profit
$664.0M
Revenue
$414.0M
Cost of revenue
$1.5B
Quarter-over-quarter change
+130.6 pts
Year-over-year change
+131.4 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 | $2.4B | $964.0M | $2.2B | 39.5% |
| Jun 30, 2023 | $4.8B | $1.4B | $2.6B | 29.8% |
| Sep 30, 2023 | $414.0M | $664.0M | $1.5B | 160.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+130.6 pts
Year-over-year change
Sep 30, 2022
+131.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin is driven by the unusual relationship where gross profit exceeds revenue, which is a departure from typical financial patterns.
Compared to the immediately preceding period, revenue is lower, gross profit is higher, and cost of revenue is higher, leading to an improved gross margin. The same directional pattern holds when compared to the same period one year earlier.
The relationship between reported revenue and cost of revenue in this period should be monitored for consistency, as gross profit exceeds revenue.