Colgate-Palmolive Company stock research
FY2023 Q4
Colgate-Palmolive (CL) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased while cost of revenue was stable, leading to a higher gross profit and an improved gross margin compared to both the prior quarter and the same quarter last year. The relationship among the metrics shows that gross profit grew faster than revenue, with cost of revenue not rising proportionally.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased while cost of revenue was stable, leading to a higher gross profit and an improved gross margin compared to both the prior quarter and the same quarter last year. The relationship among the metrics shows that gross profit grew faster than revenue, with cost of revenue not rising proportionally.
- The strongest observable driver is the sequential and year-over-year improvement in gross margin, which moved higher in both comparisons. This was driven by revenue growing while cost of revenue remained unchanged.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.6%
Gross profit
$3.0B
Revenue
$5.0B
Cost of revenue
$2.0B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+4.0 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 | $2.7B | $2.1B | 56.9% |
| Jun 30, 2023 | $4.8B | $2.8B | $2.0B | 57.8% |
| Sep 30, 2023 | $4.9B | $2.9B | $2.0B | 58.5% |
| Dec 31, 2023 | $5.0B | $3.0B | $2.0B | 59.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.1 pts
Year-over-year change
Dec 31, 2022
+4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the sequential and year-over-year improvement in gross margin, which moved higher in both comparisons. This was driven by revenue growing while cost of revenue remained unchanged.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin improved.
Monitor whether cost of revenue remains stable in future quarters, as its current steadiness has been a key factor in margin expansion.