Eli Lilly and Company stock research
FY2023 Q4
Eli Lilly and (LLY) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue rose at a slower pace, resulting in an improved gross margin. Sequentially, revenue was slightly lower but cost of revenue decreased more, keeping gross profit stable and lifting the gross margin higher.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue rose at a slower pace, resulting in an improved gross margin. Sequentially, revenue was slightly lower but cost of revenue decreased more, keeping gross profit stable and lifting the gross margin higher.
- The strongest observable driver is the lower cost of revenue relative to revenue compared with both the prior quarter and the year-ago quarter.
- Gross margin improved from the prior quarter and from the same quarter one year earlier. Revenue was slightly lower than the prior quarter but higher than the year-ago quarter, while cost of revenue decreased sequentially and increased year over year at a slower rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.9%
Gross profit
$7.6B
Revenue
$9.4B
Cost of revenue
$1.8B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+2.1 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 | $7.0B | $5.3B | $1.6B | 76.6% |
| Jun 30, 2023 | $8.3B | $6.5B | $1.8B | 78.3% |
| Sep 30, 2023 | $9.5B | $7.6B | $1.9B | 80.4% |
| Dec 31, 2023 | $9.4B | $7.6B | $1.8B | 80.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.5 pts
Year-over-year change
Dec 31, 2022
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the lower cost of revenue relative to revenue compared with both the prior quarter and the year-ago quarter.
Gross margin improved from the prior quarter and from the same quarter one year earlier. Revenue was slightly lower than the prior quarter but higher than the year-ago quarter, while cost of revenue decreased sequentially and increased year over year at a slower rate than revenue.
Monitor capital expenditure trends and facility investments as disclosed in the filing, given their potential to influence future cost structure.