Cummins Inc. stock research
FY2023 Q3
Cummins (CMI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue for the quarter decreased compared with the immediately preceding quarter, while gross profit was essentially unchanged, resulting in gross margin weakening slightly. Compared with the same quarter one year earlier, both revenue and gross profit were substantially higher, yielding an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue for the quarter decreased compared with the immediately preceding quarter, while gross profit was essentially unchanged, resulting in gross margin weakening slightly. Compared with the same quarter one year earlier, both revenue and gross profit were substantially higher, yielding an improved gross margin.
- Gross profit held steady despite a lower revenue base, indicating that the cost of revenue declined proportionally more than revenue. This relative efficiency in cost management was the principal observable factor supporting margin stability.
- Versus the prior quarter, gross margin was slightly lower as revenue fell while gross profit remained flat. Versus the same quarter last year, gross margin strengthened materially on significantly higher revenue and a larger gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.6%
Gross profit
$2.1B
Revenue
$8.4B
Cost of revenue
$6.4B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+2.2 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 | $8.5B | $2.0B | $6.4B | 24.0% |
| Jun 30, 2023 | $8.6B | $2.1B | $6.5B | 24.9% |
| Sep 30, 2023 | $8.4B | $2.1B | $6.4B | 24.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.3 pts
Year-over-year change
Sep 30, 2022
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit held steady despite a lower revenue base, indicating that the cost of revenue declined proportionally more than revenue. This relative efficiency in cost management was the principal observable factor supporting margin stability.
Versus the prior quarter, gross margin was slightly lower as revenue fell while gross profit remained flat. Versus the same quarter last year, gross margin strengthened materially on significantly higher revenue and a larger gross profit.
Monitor whether the cost of revenue continues to trend lower relative to revenue in future quarters to assess margin sustainability.