Ford Motor Company stock research
FY2023 Q4
Ford Motor (F) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was higher than both the preceding quarter and the same quarter one year earlier, but gross profit was lower and cost of revenue was higher. Consequently, gross margin weakened.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was higher than both the preceding quarter and the same quarter one year earlier, but gross profit was lower and cost of revenue was higher. Consequently, gross margin weakened.
- The strongest observable margin driver is the faster growth of cost of revenue compared to revenue, which reduced gross profit and compressed the margin.
- Compared with the immediately preceding quarter, revenue increased while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. The same pattern holds when compared with the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.1%
Gross profit
$5.1B
Revenue
$46.0B
Cost of revenue
$40.9B
Quarter-over-quarter change
-3.2 pts
Year-over-year change
-3.0 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 | $41.5B | $6.8B | $34.7B | 16.4% |
| Jun 30, 2023 | $45.0B | $7.5B | $37.5B | 16.6% |
| Sep 30, 2023 | $43.8B | $6.3B | $37.5B | 14.3% |
| Dec 31, 2023 | $46.0B | $5.1B | $40.9B | 11.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-3.2 pts
Year-over-year change
Dec 31, 2022
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster growth of cost of revenue compared to revenue, which reduced gross profit and compressed the margin.
Compared with the immediately preceding quarter, revenue increased while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. The same pattern holds when compared with the same quarter one year earlier.
Monitor the trajectory of cost of revenue relative to revenue, as it was the principal factor in the margin decline.