Ecolab Inc. stock research
FY2024 Q1
Ecolab (ECL) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both declined versus the immediate prior quarter while cost of revenue also decreased, leading to a higher gross margin. Compared with the same period one year earlier, revenue and gross profit rose as cost of revenue fell, producing a notably improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both declined versus the immediate prior quarter while cost of revenue also decreased, leading to a higher gross margin. Compared with the same period one year earlier, revenue and gross profit rose as cost of revenue fell, producing a notably improved gross margin.
- Gross margin strengthened sequentially and year-over-year, with the current margin positioned between the prior-quarter level and the year-ago level. The improvement reflects a larger proportion of revenue flowing through to gross profit relative to cost of revenue in both comparison periods.
- Sequentially, revenue and gross profit were lower while cost of revenue was also lower, resulting in a higher gross margin. Year-over-year, revenue and gross profit were higher while cost of revenue was lower, producing a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.3%
Gross profit
$1.6B
Revenue
$3.8B
Cost of revenue
$2.1B
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+5.0 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% |
| Mar 31, 2024 | $3.8B | $1.6B | $2.1B | 43.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+2.2 pts
Year-over-year change
Mar 31, 2023
+5.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year-over-year, with the current margin positioned between the prior-quarter level and the year-ago level. The improvement reflects a larger proportion of revenue flowing through to gross profit relative to cost of revenue in both comparison periods.
Sequentially, revenue and gross profit were lower while cost of revenue was also lower, resulting in a higher gross margin. Year-over-year, revenue and gross profit were higher while cost of revenue was lower, producing a higher gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its decrease contributed to the sequential and year-over-year gross margin expansion.