Ingersoll Rand Inc. stock research
FY2023 Q1
Ingersoll Rand (IR) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was higher than both periods, with cost of revenue lower sequentially and higher year-over-year, resulting in a gross margin that was higher than both prior periods.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was higher than both periods, with cost of revenue lower sequentially and higher year-over-year, resulting in a gross margin that was higher than both prior periods.
- The strongest observable margin driver is the sequential reduction in cost of revenue while revenue remained flat, and the year-over-year growth in revenue outpacing the growth in cost of revenue. One concrete item to monitor is the trend of cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, gross margin was higher, with cost of revenue lower and revenue stable. Compared to the same quarter one year earlier, gross margin was higher, with revenue higher and cost of revenue higher but to a lesser extent.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.8%
Gross profit
$664.2M
Revenue
$1.6B
Cost of revenue
$965.1M
Quarter-over-quarter change
n/a
Year-over-year change
+1.4 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 | $1.6B | $664.2M | $965.1M | 40.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential reduction in cost of revenue while revenue remained flat, and the year-over-year growth in revenue outpacing the growth in cost of revenue. One concrete item to monitor is the trend of cost of revenue relative to revenue.
Compared to the immediately preceding quarter, gross margin was higher, with cost of revenue lower and revenue stable. Compared to the same quarter one year earlier, gross margin was higher, with revenue higher and cost of revenue higher but to a lesser extent.
Monitor the ratio of cost of revenue to revenue in future quarters.