F

Ford Motor Company stock research

Sep 30, 2023

FY2023 Q3

Ford Motor (F) Gross Margin — Quarter Ended Sep 30, 2023

Revenue decreased from the prior quarter while cost of revenue remained unchanged, causing gross profit and gross margin to decline. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue decreased from the prior quarter while cost of revenue remained unchanged, causing gross profit and gross margin to decline. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.

  • The gross margin weakened sequentially as gross profit fell while cost of revenue held steady. The year-over-year improvement in gross margin was driven by a larger increase in revenue relative to cost of revenue.
  • Compared to the prior quarter, revenue was lower and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

14.3%

Gross profit

$6.3B

Revenue

$43.8B

Cost of revenue

$37.5B

Quarter-over-quarter change

-2.4 pts

Year-over-year change

+1.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$41.5B$6.8B$34.7B16.4%
Jun 30, 2023$45.0B$7.5B$37.5B16.6%
Sep 30, 2023$43.8B$6.3B$37.5B14.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

-2.4 pts

Year-over-year change

Sep 30, 2022

+1.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin weakened sequentially as gross profit fell while cost of revenue held steady. The year-over-year improvement in gross margin was driven by a larger increase in revenue relative to cost of revenue.

Compared to the prior quarter, revenue was lower and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin improved.

Monitor the impact of the expected significant increase in labor costs under the new UAW contract on future cost of revenue.