Masco Corporation stock research
FY2023 Q4
Masco (MAS) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was slightly lower than the prior quarter, while gross profit decreased and cost of revenue remained stable, resulting in a lower gross margin. Compared to the same quarter last year, revenue was similar, but gross profit was higher and cost of revenue was lower, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was slightly lower than the prior quarter, while gross profit decreased and cost of revenue remained stable, resulting in a lower gross margin. Compared to the same quarter last year, revenue was similar, but gross profit was higher and cost of revenue was lower, leading to an improved gross margin.
- The gross margin weakened sequentially due to a decline in gross profit relative to revenue, with cost of revenue unchanged. The strongest observable driver is the reduction in cost of revenue compared to the prior year, which supported margin expansion.
- Compared to the immediately preceding quarter, gross margin was lower, driven by a decrease in gross profit while revenue declined slightly. Compared to the same quarter one year earlier, gross margin was higher, as gross profit increased and cost of revenue decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.8%
Gross profit
$654.0M
Revenue
$1.9B
Cost of revenue
$1.2B
Quarter-over-quarter change
-2.8 pts
Year-over-year change
+6.4 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% |
| Dec 31, 2023 | $1.9B | $654.0M | $1.2B | 34.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-2.8 pts
Year-over-year change
Dec 31, 2022
+6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially due to a decline in gross profit relative to revenue, with cost of revenue unchanged. The strongest observable driver is the reduction in cost of revenue compared to the prior year, which supported margin expansion.
Compared to the immediately preceding quarter, gross margin was lower, driven by a decrease in gross profit while revenue declined slightly. Compared to the same quarter one year earlier, gross margin was higher, as gross profit increased and cost of revenue decreased.
Monitor the trajectory of cost of revenue, which remained stable sequentially but was lower year-over-year, as any change could affect gross margin.