Becton, Dickinson and Company stock research
FY2023 Q4
Becton, Dickinson and (BDX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased relative to both periods. The decline in gross profit, combined with a larger increase in cost of revenue, resulted in a lower gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased relative to both periods. The decline in gross profit, combined with a larger increase in cost of revenue, resulted in a lower gross margin.
- The most observable driver of the gross margin decline is the disproportionate increase in cost of revenue relative to revenue growth. Cost of revenue rose more sharply than revenue when compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, gross margin weakened, as gross profit fell while revenue rose. Versus the same quarter one year earlier, gross margin also weakened, with gross profit lower despite higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.4%
Gross profit
$1.7B
Revenue
$5.1B
Cost of revenue
$3.4B
Quarter-over-quarter change
-9.6 pts
Year-over-year change
-10.2 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 | $4.8B | $2.2B | $2.6B | 46.4% |
| Jun 30, 2023 | $4.9B | $2.1B | $2.8B | 43.1% |
| Sep 30, 2023 | $5.1B | $1.7B | $3.4B | 33.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-9.6 pts
Year-over-year change
Sep 30, 2022
-10.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin decline is the disproportionate increase in cost of revenue relative to revenue growth. Cost of revenue rose more sharply than revenue when compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, gross margin weakened, as gross profit fell while revenue rose. Versus the same quarter one year earlier, gross margin also weakened, with gross profit lower despite higher revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin compression persists.