Baxter International Inc. stock research
FY2024 Q1
Baxter International (BAX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both declined compared to the prior quarter, while cost of revenue decreased at a slower pace, resulting in a lower gross margin. Versus the same quarter one year earlier, revenue was higher and cost of revenue was notably lower, yielding a gross profit that was roughly level and a gross margin that weakened slightly.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both declined compared to the prior quarter, while cost of revenue decreased at a slower pace, resulting in a lower gross margin. Versus the same quarter one year earlier, revenue was higher and cost of revenue was notably lower, yielding a gross profit that was roughly level and a gross margin that weakened slightly.
- The relationship between cost of revenue and gross profit is the most direct driver of gross margin change; in the current quarter, cost of revenue fell less than revenue relative to the prior quarter, compressing margin.
- Current quarter gross margin is lower than the immediately preceding quarter and lower than the same quarter one year earlier. The margin decline from the prior quarter reflects a greater proportional decrease in revenue relative to the decrease in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.6%
Gross profit
$961.0M
Revenue
$2.5B
Cost of revenue
$1.5B
Quarter-over-quarter change
-121.8 pts
Year-over-year change
-0.9 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% |
| Mar 31, 2024 | $2.5B | $961.0M | $1.5B | 38.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-121.8 pts
Year-over-year change
Mar 31, 2023
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and gross profit is the most direct driver of gross margin change; in the current quarter, cost of revenue fell less than revenue relative to the prior quarter, compressing margin.
Current quarter gross margin is lower than the immediately preceding quarter and lower than the same quarter one year earlier. The margin decline from the prior quarter reflects a greater proportional decrease in revenue relative to the decrease in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as the pace of cost reduction lagged revenue decline in the sequential comparison.