Caterpillar Inc. stock research
FY2023 Q1
Caterpillar (CAT) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was lower than the prior quarter but higher than the year-ago quarter, while gross profit increased relative to both periods. The gross margin improved, as cost of revenue decreased more than revenue sequentially and increased less than revenue year over year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was lower than the prior quarter but higher than the year-ago quarter, while gross profit increased relative to both periods. The gross margin improved, as cost of revenue decreased more than revenue sequentially and increased less than revenue year over year.
- The strongest observable driver of the margin improvement is the change in the ratio of cost of revenue to revenue, which decreased from the prior quarter and from the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, leading to an improved gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were higher, with gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.3%
Gross profit
$5.8B
Revenue
$15.9B
Cost of revenue
$10.1B
Quarter-over-quarter change
n/a
Year-over-year change
+6.7 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 | $15.9B | $5.8B | $10.1B | 36.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+6.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement is the change in the ratio of cost of revenue to revenue, which decreased from the prior quarter and from the year-ago quarter.
Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, leading to an improved gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were higher, with gross margin also improved.
Monitor the trend in cost of revenue relative to revenue, as the filing context highlights strong operating cash flow but does not address margin sustainability.