CF Industries Holdings, Inc. stock research
FY2023 Q4
CF Industries Holdings (CF) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both improved compared to the prior quarter, while cost of revenue increased at a slower pace, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both improved compared to the prior quarter, while cost of revenue increased at a slower pace, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
- The relationship between revenue and cost of revenue drove the gross margin improvement from the prior quarter, as revenue grew faster than cost of revenue. The year-over-year decline in gross margin was driven by a proportionally larger decrease in gross profit relative to revenue.
- Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.9%
Gross profit
$501.0M
Revenue
$1.6B
Cost of revenue
$1.1B
Quarter-over-quarter change
+2.3 pts
Year-over-year change
-16.3 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 | $2.0B | $863.0M | $1.1B | 42.9% |
| Jun 30, 2023 | $1.8B | $804.0M | $971.0M | 45.3% |
| Sep 30, 2023 | $1.3B | $377.0M | $896.0M | 29.6% |
| Dec 31, 2023 | $1.6B | $501.0M | $1.1B | 31.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+2.3 pts
Year-over-year change
Dec 31, 2022
-16.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin improvement from the prior quarter, as revenue grew faster than cost of revenue. The year-over-year decline in gross margin was driven by a proportionally larger decrease in gross profit relative to revenue.
Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as it is the primary observable factor influencing gross margin changes.