Danaher Corporation stock research
FY2024 Q1
Danaher (DHR) Gross Margin — Quarter Ended Mar 29, 2024
Revenue and gross profit both declined, while cost of revenue also decreased, resulting in a gross margin that improved sequentially but weakened compared to the same quarter last year. The relationship among these metrics shows that the margin change was driven by the relative movement of cost of revenue against revenue.
Gross margin takeaway
Quarter ended Mar 29, 2024 · FY2024 Q1
Revenue and gross profit both declined, while cost of revenue also decreased, resulting in a gross margin that improved sequentially but weakened compared to the same quarter last year. The relationship among these metrics shows that the margin change was driven by the relative movement of cost of revenue against revenue.
- The strongest observable margin driver is the change in cost of revenue relative to revenue; sequentially, cost of revenue declined while revenue also declined, leading to an improved gross margin.
- Compared with the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.2%
Gross profit
$3.5B
Revenue
$5.8B
Cost of revenue
$2.3B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-1.4 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 | $5.9B | $3.7B | $2.3B | 61.6% |
| Jun 30, 2023 | $5.9B | $3.3B | $2.6B | 56.1% |
| Sep 29, 2023 | $5.6B | $3.3B | $2.3B | 58.2% |
| Mar 29, 2024 | $5.8B | $3.5B | $2.3B | 60.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2023
+1.9 pts
Year-over-year change
Mar 31, 2023
-1.4 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; sequentially, cost of revenue declined while revenue also declined, leading to an improved gross margin.
Compared with the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened.
Monitor inventory levels and composition as detailed in the filing, given their direct impact on cost of revenue and gross margin.