Ecolab Inc. stock research
FY2024 Q2
Ecolab (ECL) Gross Margin — Quarter Ended Jun 30, 2024
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue and gross profit were higher, while cost of revenue decreased year over year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue and gross profit were higher, while cost of revenue decreased year over year.
- The primary observable driver is the combination of higher revenue and lower cost of revenue relative to the same quarter last year, resulting in an expanded gross profit and gross margin.
- Sequentially, revenue and gross profit increased, and gross margin improved. Year over year, revenue was higher, cost of revenue was lower, and gross profit and gross margin were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.8%
Gross profit
$1.7B
Revenue
$4.0B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+4.4 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 | $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% |
| Jun 30, 2024 | $4.0B | $1.7B | $2.2B | 43.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.5 pts
Year-over-year change
Jun 30, 2023
+4.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the combination of higher revenue and lower cost of revenue relative to the same quarter last year, resulting in an expanded gross profit and gross margin.
Sequentially, revenue and gross profit increased, and gross margin improved. Year over year, revenue was higher, cost of revenue was lower, and gross profit and gross margin were higher.
Monitor the trend in cost of revenue relative to revenue to assess the sustainability of margin improvement.