Kimberly-Clark Corporation stock research
FY2024 Q2
Kimberly-Clark (KMB) Gross Margin — Quarter Ended Jun 30, 2024
In the current quarter, gross profit is the difference between revenue and cost of revenue, and gross margin is the ratio of gross profit to revenue. Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue decreased more sharply than revenue year-over-year, leading to a higher gross margin than a year ago, but a lower gross margin than the prior quarter.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
In the current quarter, gross profit is the difference between revenue and cost of revenue, and gross margin is the ratio of gross profit to revenue. Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue decreased more sharply than revenue year-over-year, leading to a higher gross margin than a year ago, but a lower gross margin than the prior quarter.
- The strongest observable driver of gross margin movement is the change in cost of revenue relative to revenue. Year-over-year, cost of revenue fell more than revenue, lifting the margin, while sequentially, cost of revenue declined less proportionally than revenue, compressing the margin.
- Compared to the immediately preceding quarter, gross profit and gross margin were lower as revenue decreased and cost of revenue declined less proportionally. Compared to the same quarter one year earlier, gross profit was slightly lower, but gross margin was higher because cost of revenue declined more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.7%
Gross profit
$1.6B
Revenue
$4.2B
Cost of revenue
$2.6B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+4.0 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $5.1B | $1.8B | $3.3B | 35.8% |
| Dec 31, 2023 | $1.7B | $974.0M | $711.0M | 57.8% |
| Mar 31, 2024 | $4.3B | $1.7B | $3.2B | 39.0% |
| Jun 30, 2024 | $4.2B | $1.6B | $2.6B | 37.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-1.3 pts
Year-over-year change
Jun 30, 2023
+4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin movement is the change in cost of revenue relative to revenue. Year-over-year, cost of revenue fell more than revenue, lifting the margin, while sequentially, cost of revenue declined less proportionally than revenue, compressing the margin.
Compared to the immediately preceding quarter, gross profit and gross margin were lower as revenue decreased and cost of revenue declined less proportionally. Compared to the same quarter one year earlier, gross profit was slightly lower, but gross margin was higher because cost of revenue declined more than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as it is the primary factor driving gross margin changes in both comparisons.