Masco Corporation stock research
FY2023 Q3
Masco (MAS) Gross Margin — Quarter Ended Sep 30, 2023
Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue declined more sharply, resulting in a higher gross margin. Gross profit improved compared to the prior year but weakened sequentially, reflecting the interplay of revenue and cost changes.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue declined more sharply, resulting in a higher gross margin. Gross profit improved compared to the prior year but weakened sequentially, reflecting the interplay of revenue and cost changes.
- The strongest observable margin driver was the reduction in cost of revenue, which declined proportionally more than revenue in both the sequential and year-over-year comparisons.
- Sequentially, revenue and gross profit were lower, but the steeper decline in cost of revenue led to an improved gross margin. Year-over-year, revenue was lower while gross profit was higher, and cost of revenue was significantly lower, driving a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$744.0M
Revenue
$2.0B
Cost of revenue
$1.2B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+6.1 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 | $2.0B | $669.0M | $1.3B | 33.8% |
| Jun 30, 2023 | $2.1B | $769.0M | $1.4B | 36.2% |
| Sep 30, 2023 | $2.0B | $744.0M | $1.2B | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.4 pts
Year-over-year change
Sep 30, 2022
+6.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue, which declined proportionally more than revenue in both the sequential and year-over-year comparisons.
Sequentially, revenue and gross profit were lower, but the steeper decline in cost of revenue led to an improved gross margin. Year-over-year, revenue was lower while gross profit was higher, and cost of revenue was significantly lower, driving a higher gross margin.
Monitor inventory levels, which decreased from the end of the prior year, as inventory changes can influence cost of revenue and gross margin.