Fastenal Company stock research
FY2023 Q4
Fastenal (FAST) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin were lower sequentially but higher year-over-year, while cost of revenue followed a similar pattern.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin were lower sequentially but higher year-over-year, while cost of revenue followed a similar pattern.
- The relationship among revenue, gross profit, and cost of revenue shows that gross margin is driven by the proportion of cost of revenue to revenue. Sequentially, cost of revenue as a share of revenue increased slightly, leading to a lower gross margin, while year-over-year that share decreased, resulting in an improved gross margin.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue declined less than the decrease in gross profit. Compared to the same quarter one year earlier, gross margin improved as cost of revenue grew at a slower pace than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.5%
Gross profit
$799.4M
Revenue
$1.8B
Cost of revenue
$959.2M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.1 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 | $1.9B | $850.0M | $1.0B | 45.7% |
| Jun 30, 2023 | $1.9B | $857.5M | $1.0B | 45.5% |
| Sep 30, 2023 | $1.8B | $847.6M | $998.3M | 45.9% |
| Dec 31, 2023 | $1.8B | $799.4M | $959.2M | 45.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.5 pts
Year-over-year change
Dec 31, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, gross profit, and cost of revenue shows that gross margin is driven by the proportion of cost of revenue to revenue. Sequentially, cost of revenue as a share of revenue increased slightly, leading to a lower gross margin, while year-over-year that share decreased, resulting in an improved gross margin.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue declined less than the decrease in gross profit. Compared to the same quarter one year earlier, gross margin improved as cost of revenue grew at a slower pace than revenue.
Monitor the ratio of cost of revenue to revenue in upcoming quarters.