Genuine Parts Company stock research
FY2023 Q4
Genuine Parts (GPC) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the prior quarter but increased compared to the same quarter last year, while cost of revenue followed a similar pattern. Gross margin improved both sequentially and year-over-year, and the company's filing highlights a strong financial position and cash flow performance.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased compared to the prior quarter but increased compared to the same quarter last year, while cost of revenue followed a similar pattern. Gross margin improved both sequentially and year-over-year, and the company's filing highlights a strong financial position and cash flow performance.
- The primary driver of the gross margin improvement is the relationship between revenue and cost of revenue, with revenue increasing more than cost of revenue on a year-over-year basis and cost of revenue decreasing more than revenue on a sequential basis.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue was higher, gross profit was unchanged, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.4%
Gross profit
$2.0B
Revenue
$5.6B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.7 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 | $5.8B | $2.0B | $3.8B | 34.9% |
| Jun 30, 2023 | $5.9B | $2.1B | $3.8B | 36.1% |
| Sep 30, 2023 | $5.8B | $2.1B | $3.7B | 36.2% |
| Dec 31, 2023 | $5.6B | $2.0B | $3.6B | 36.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.2 pts
Year-over-year change
Dec 31, 2022
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement is the relationship between revenue and cost of revenue, with revenue increasing more than cost of revenue on a year-over-year basis and cost of revenue decreasing more than revenue on a sequential basis.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue was higher, gross profit was unchanged, and gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as it directly impacts gross margin.