ConocoPhillips stock research
FY2023 Q4
ConocoPhillips (COP) Gross Margin — Quarter Ended Dec 31, 2023
Gross profit is the difference between revenue and cost of revenue, and gross margin represents that profit as a share of revenue. In the current quarter, revenue and cost of revenue both increased relative to the prior quarter, resulting in a slightly improved gross margin; compared to the same quarter a year earlier, revenue was lower but cost of revenue was substantially lower, leading to a higher gross profit and a significantly improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Gross profit is the difference between revenue and cost of revenue, and gross margin represents that profit as a share of revenue. In the current quarter, revenue and cost of revenue both increased relative to the prior quarter, resulting in a slightly improved gross margin; compared to the same quarter a year earlier, revenue was lower but cost of revenue was substantially lower, leading to a higher gross profit and a significantly improved gross margin.
- The primary observable driver of the year-over-year margin improvement was the reduction in cost of revenue relative to revenue, which expanded gross profit. This relationship was the most significant factor in the margin increase.
- Compared to the immediately preceding quarter, gross margin was stable with a slight improvement, while versus the year-ago quarter, gross margin improved substantially. Revenue and cost of revenue both moved higher sequentially, but cost of revenue fell sharply on a year-over-year basis.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.1%
Gross profit
$7.3B
Revenue
$12.9B
Cost of revenue
$5.7B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+19.2 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 | $12.0B | $5.8B | $6.1B | 48.7% |
| Jun 30, 2023 | $11.0B | $6.4B | $4.6B | 58.1% |
| Sep 30, 2023 | $12.6B | $7.1B | $5.5B | 56.0% |
| Dec 31, 2023 | $12.9B | $7.3B | $5.7B | 56.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.1 pts
Year-over-year change
Dec 31, 2022
+19.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the year-over-year margin improvement was the reduction in cost of revenue relative to revenue, which expanded gross profit. This relationship was the most significant factor in the margin increase.
Compared to the immediately preceding quarter, gross margin was stable with a slight improvement, while versus the year-ago quarter, gross margin improved substantially. Revenue and cost of revenue both moved higher sequentially, but cost of revenue fell sharply on a year-over-year basis.
Monitor the trend in cost of revenue relative to revenue to assess whether the current margin level can be maintained.