Ecolab Inc. stock research
FY2023 Q2
Ecolab (ECL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit grew, and gross margin improved, reflecting a greater portion of revenue converted to gross profit.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit grew, and gross margin improved, reflecting a greater portion of revenue converted to gross profit.
- Revenue grew more than cost of revenue, which improved gross margin.
- Gross margin was higher than the immediately preceding quarter and also higher than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.4%
Gross profit
$1.5B
Revenue
$3.9B
Cost of revenue
$2.3B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+1.1 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% |
| Jun 30, 2023 | $3.9B | $1.5B | $2.3B | 39.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.1 pts
Year-over-year change
Jun 30, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue grew more than cost of revenue, which improved gross margin.
Gross margin was higher than the immediately preceding quarter and also higher than the same quarter one year earlier.
Monitor the company's disclosure of volume and pricing effects, as these are identified as material sales drivers in the management discussion.