Ingersoll Rand Inc. stock research
FY2023 Q4
Ingersoll Rand (IR) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit grew more than cost of revenue, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit grew more than cost of revenue, leading to a higher gross margin.
- The strongest observable driver was the improvement in gross margin, which was higher than both the prior quarter and the year-ago quarter, driven by a larger increase in gross profit relative to cost of revenue.
- Compared to the prior quarter, gross margin was higher. Compared to the same quarter one year ago, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.9%
Gross profit
$781.2M
Revenue
$1.8B
Cost of revenue
$1.0B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+2.6 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% |
| Jun 30, 2023 | $1.7B | $697.5M | $989.0M | 41.4% |
| Sep 30, 2023 | $1.7B | $739.3M | $999.6M | 42.5% |
| Dec 31, 2023 | $1.8B | $781.2M | $1.0B | 42.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.4 pts
Year-over-year change
Dec 31, 2022
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the improvement in gross margin, which was higher than both the prior quarter and the year-ago quarter, driven by a larger increase in gross profit relative to cost of revenue.
Compared to the prior quarter, gross margin was higher. Compared to the same quarter one year ago, gross margin was also higher.
Monitor the relationship between cost of revenue and revenue to see if the margin improvement can be sustained.