Ingersoll Rand Inc. stock research
FY2024 Q1
Ingersoll Rand (IR) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was lower than the prior quarter but higher than the same quarter a year earlier. Gross profit followed a similar pattern, while cost of revenue decreased from both comparison periods, resulting in gross margin improvement relative to both prior periods.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was lower than the prior quarter but higher than the same quarter a year earlier. Gross profit followed a similar pattern, while cost of revenue decreased from both comparison periods, resulting in gross margin improvement relative to both prior periods.
- The strongest observable driver of the gross margin increase was the decline in cost of revenue relative to revenue, which led to an expanded margin despite changes in revenue levels.
- Compared to the immediately preceding quarter, gross margin improved even though revenue was lower. Compared to the same quarter one year earlier, gross margin improved with higher revenue and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.7%
Gross profit
$746.3M
Revenue
$1.7B
Cost of revenue
$923.8M
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+3.9 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $1.7B | $746.3M | $923.8M | 44.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.8 pts
Year-over-year change
Mar 31, 2023
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin increase was the decline in cost of revenue relative to revenue, which led to an expanded margin despite changes in revenue levels.
Compared to the immediately preceding quarter, gross margin improved even though revenue was lower. Compared to the same quarter one year earlier, gross margin improved with higher revenue and lower cost of revenue.
Monitor the trajectory of cost of revenue to assess whether the margin improvement can be sustained.