Ecolab Inc. stock research
FY2023 Q1
Ecolab (ECL) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased slightly from the prior quarter while cost of revenue also decreased, resulting in a relatively stable gross profit and a slightly lower gross margin. Compared to the same quarter last year, revenue and gross profit both increased, with gross profit rising at a faster pace, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased slightly from the prior quarter while cost of revenue also decreased, resulting in a relatively stable gross profit and a slightly lower gross margin. Compared to the same quarter last year, revenue and gross profit both increased, with gross profit rising at a faster pace, leading to an improved gross margin.
- The year-over-year improvement in gross margin is the strongest observable driver, as gross profit grew more than revenue relative to the prior year period.
- Relative to the preceding quarter, gross margin weakened slightly, while compared to the same quarter a year ago, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$1.4B
Revenue
$3.6B
Cost of revenue
$2.2B
Quarter-over-quarter change
n/a
Year-over-year change
+1.7 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 | $3.6B | $1.4B | $2.2B | 38.3% |
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
Mar 31, 2022
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin is the strongest observable driver, as gross profit grew more than revenue relative to the prior year period.
Relative to the preceding quarter, gross margin weakened slightly, while compared to the same quarter a year ago, gross margin improved.
Monitor the trend in cost of revenue as a proportion of revenue, as the company's management discussion references volume, pricing, and currency as key factors.