DH

Danaher Corporation stock research

Mar 31, 2023

FY2023 Q1

Danaher (DHR) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened year-over-year, indicating a mixed trend.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened year-over-year, indicating a mixed trend.

  • The strongest observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue was higher than the prior quarter but lower than a year ago, while revenue declined in both comparisons.
  • Compared to the immediately preceding quarter, gross margin was higher despite lower revenue and gross profit. Compared to the same quarter one year earlier, gross margin was lower, with lower revenue and gross profit.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

61.6%

Gross profit

$3.7B

Revenue

$5.9B

Cost of revenue

$2.3B

Quarter-over-quarter change

n/a

Year-over-year change

-0.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$5.9B$3.7B$2.3B61.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Apr 1, 2022

-0.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue was higher than the prior quarter but lower than a year ago, while revenue declined in both comparisons.

Compared to the immediately preceding quarter, gross margin was higher despite lower revenue and gross profit. Compared to the same quarter one year earlier, gross margin was lower, with lower revenue and gross profit.

Monitor inventory levels, which increased from the end of the prior quarter.

DHR Gross Margin — Quarter Ended Mar 31, 2023