Ecolab Inc. stock research
FY2023 Q3
Ecolab (ECL) Gross Margin — Quarter Ended Sep 30, 2023
For the quarter, revenue, gross profit, and gross margin all increased compared with both the prior quarter and the same quarter last year. The cost of revenue was stable sequentially and relative to the year-ago period, indicating that the improvement in gross margin was driven by revenue growth outpacing cost changes.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
For the quarter, revenue, gross profit, and gross margin all increased compared with both the prior quarter and the same quarter last year. The cost of revenue was stable sequentially and relative to the year-ago period, indicating that the improvement in gross margin was driven by revenue growth outpacing cost changes.
- The most observable driver is the sequential and year-over-year expansion of gross margin, supported by higher revenue while cost of revenue remained essentially unchanged.
- Compared with the prior quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was also stable, resulting in a strengthened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.1%
Gross profit
$1.6B
Revenue
$4.0B
Cost of revenue
$2.3B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+3.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.6B | $1.4B | $2.2B | 38.3% |
| Jun 30, 2023 | $3.9B | $1.5B | $2.3B | 39.4% |
| Sep 30, 2023 | $4.0B | $1.6B | $2.3B | 41.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.7 pts
Year-over-year change
Sep 30, 2022
+3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the sequential and year-over-year expansion of gross margin, supported by higher revenue while cost of revenue remained essentially unchanged.
Compared with the prior quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was also stable, resulting in a strengthened gross margin.
Monitor whether cost of revenue remains stable in future quarters, as any increase could pressure the recent margin improvement.