Chevron Corporation stock research
FY2023 Q4
Chevron (CVX) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was lower than the prior quarter and the year-ago quarter, while cost of revenue fell more sharply. Consequently, gross profit was higher than the prior quarter but slightly lower than the year-ago quarter, and gross margin improved relative to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was lower than the prior quarter and the year-ago quarter, while cost of revenue fell more sharply. Consequently, gross profit was higher than the prior quarter but slightly lower than the year-ago quarter, and gross margin improved relative to both periods.
- The strongest observable driver was the reduction in cost of revenue, which declined more than the decrease in revenue, thereby expanding the gross margin.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased more than revenue. Compared to the same quarter one year earlier, gross margin also improved, with cost of revenue lower while revenue decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.8%
Gross profit
$20.5B
Revenue
$48.9B
Cost of revenue
$28.5B
Quarter-over-quarter change
+4.1 pts
Year-over-year change
+1.5 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% |
| Sep 30, 2023 | $51.9B | $19.6B | $32.3B | 37.7% |
| Dec 31, 2023 | $48.9B | $20.5B | $28.5B | 41.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+4.1 pts
Year-over-year change
Dec 31, 2022
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the reduction in cost of revenue, which declined more than the decrease in revenue, thereby expanding the gross margin.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased more than revenue. Compared to the same quarter one year earlier, gross margin also improved, with cost of revenue lower while revenue decreased.
Monitor changes in cost of revenue to assess whether the margin improvement can be sustained.