Dow Inc. stock research
FY2024 Q1
Dow (DOW) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased sequentially while cost of revenue declined, yielding a higher gross profit and an improved gross margin. Compared to the same quarter one year earlier, revenue was lower but cost of revenue fell more sharply, resulting in higher gross profit and a stronger gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased sequentially while cost of revenue declined, yielding a higher gross profit and an improved gross margin. Compared to the same quarter one year earlier, revenue was lower but cost of revenue fell more sharply, resulting in higher gross profit and a stronger gross margin.
- The strongest observable margin driver is the decline in cost of revenue relative to revenue, which expanded gross profit even as revenue rose from the prior quarter. This relationship suggests cost leverage was the primary factor behind the margin improvement.
- Gross margin improved compared to the immediately preceding quarter and strengthened versus the same quarter one year earlier. The improvement against both periods was driven by a proportionally larger reduction in cost of revenue relative to the change in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.9%
Gross profit
$1.3B
Revenue
$10.8B
Cost of revenue
$9.5B
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $11.4B | $1.5B | $9.9B | 13.5% |
| Sep 30, 2023 | $10.7B | $1.1B | $9.6B | 10.6% |
| Dec 31, 2023 | $10.6B | $975.0M | $9.6B | 9.2% |
| Mar 31, 2024 | $10.8B | $1.3B | $9.5B | 11.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.7 pts
Year-over-year change
Mar 31, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in cost of revenue relative to revenue, which expanded gross profit even as revenue rose from the prior quarter. This relationship suggests cost leverage was the primary factor behind the margin improvement.
Gross margin improved compared to the immediately preceding quarter and strengthened versus the same quarter one year earlier. The improvement against both periods was driven by a proportionally larger reduction in cost of revenue relative to the change in revenue.
Monitor trends in cost of revenue, as its movement continues to outpace revenue changes and is the primary observable driver of gross margin.