Chevron Corporation stock research
FY2023 Q2
Chevron (CVX) Gross Margin — Quarter Ended Jun 30, 2023
Revenue, cost of revenue, and gross profit each declined from both the prior quarter and the same quarter a year earlier. The gross margin expanded relative to the year-ago period but contracted from the prior quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue, cost of revenue, and gross profit each declined from both the prior quarter and the same quarter a year earlier. The gross margin expanded relative to the year-ago period but contracted from the prior quarter.
- The strongest observable driver of the gross margin change was the proportionally larger decline in cost of revenue relative to revenue when comparing the current quarter to the year-ago quarter.
- Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue was slightly lower, resulting in a narrower gross margin. Versus the same quarter a year earlier, all three metrics were substantially lower, but gross margin improved as cost of revenue declined more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.6%
Gross profit
$18.2B
Revenue
$47.2B
Cost of revenue
$29.0B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+0.8 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 | $48.8B | $19.4B | $29.4B | 39.8% |
| Jun 30, 2023 | $47.2B | $18.2B | $29.0B | 38.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.2 pts
Year-over-year change
Jun 30, 2022
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change was the proportionally larger decline in cost of revenue relative to revenue when comparing the current quarter to the year-ago quarter.
Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue was slightly lower, resulting in a narrower gross margin. Versus the same quarter a year earlier, all three metrics were substantially lower, but gross margin improved as cost of revenue declined more sharply.
Monitor the trend in cash provided by operating activities, which decreased in the first half of 2023 compared to the same period in 2022, as noted in the filing.