The Clorox Company stock research
FY2024 Q2
The Clorox (CLX) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased, gross profit increased, and cost of revenue rose compared to the prior quarter, while cost of revenue was stable relative to the same quarter last year. Gross margin improved versus both the preceding quarter and the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q2
Revenue increased, gross profit increased, and cost of revenue rose compared to the prior quarter, while cost of revenue was stable relative to the same quarter last year. Gross margin improved versus both the preceding quarter and the year-ago period.
- The strongest observable margin driver is the decline in cost of revenue as a proportion of revenue, which directly expanded the gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were also higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.5%
Gross profit
$866.0M
Revenue
$2.0B
Cost of revenue
$1.1B
Quarter-over-quarter change
+5.1 pts
Year-over-year change
+7.4 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 | $1.9B | $800.0M | $1.1B | 41.8% |
| Jun 30, 2023 | $2.0B | $862.0M | $1.2B | 42.7% |
| Sep 30, 2023 | $1.4B | $532.0M | $854.0M | 38.4% |
| Dec 31, 2023 | $2.0B | $866.0M | $1.1B | 43.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+5.1 pts
Year-over-year change
Dec 31, 2022
+7.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in cost of revenue as a proportion of revenue, which directly expanded the gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were also higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue to assess whether the improved gross margin is sustained.