Ecolab Inc. stock research
FY2024 Q3
Ecolab (ECL) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was flat versus the prior quarter and the year-ago quarter, while gross profit and gross margin improved relative to the same period last year. Cost of revenue was higher sequentially but stable compared to the year-ago period, resulting in a slight weakening of gross margin from the prior quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was flat versus the prior quarter and the year-ago quarter, while gross profit and gross margin improved relative to the same period last year. Cost of revenue was higher sequentially but stable compared to the year-ago period, resulting in a slight weakening of gross margin from the prior quarter.
- Gross margin strengthened compared to the same quarter last year, driven by higher gross profit on unchanged revenue. The sequential decline from the prior quarter reflects a modest increase in cost of revenue.
- Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew while revenue remained level. Relative to the same quarter a year ago, gross margin improved, with gross profit rising while revenue and cost of revenue were broadly similar.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.4%
Gross profit
$1.7B
Revenue
$4.0B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+2.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $4.0B | $1.7B | $2.3B | 43.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.3 pts
Year-over-year change
Sep 30, 2023
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened compared to the same quarter last year, driven by higher gross profit on unchanged revenue. The sequential decline from the prior quarter reflects a modest increase in cost of revenue.
Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew while revenue remained level. Relative to the same quarter a year ago, gross margin improved, with gross profit rising while revenue and cost of revenue were broadly similar.
Monitor trends in cost of revenue; its sequential increase contributed to the modest margin decline even as revenue held steady.