LyondellBasell Industries N.V. stock research
FY2023 Q4
LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved relative to both periods, indicating that the reduction in cost of revenue outpaced the decline in revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved relative to both periods, indicating that the reduction in cost of revenue outpaced the decline in revenue.
- The strongest observable margin driver is the relative change between revenue and cost of revenue, as gross margin rose despite lower revenue. This suggests cost of revenue decreased at a faster rate than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were also lower, but gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.3%
Gross profit
$632.0M
Revenue
$2.2B
Cost of revenue
$1.5B
Quarter-over-quarter change
+15.7 pts
Year-over-year change
+21.0 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $10.2B | $1.4B | $8.9B | 13.5% |
| Jun 30, 2023 | $10.3B | $1.4B | $8.9B | 14.0% |
| Sep 30, 2023 | $10.6B | $1.4B | $9.2B | 13.6% |
| Dec 31, 2023 | $2.2B | $632.0M | $1.5B | 29.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+15.7 pts
Year-over-year change
Dec 31, 2022
+21.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative change between revenue and cost of revenue, as gross margin rose despite lower revenue. This suggests cost of revenue decreased at a faster rate than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were also lower, but gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.