Marathon Petroleum Corporation stock research
FY2023 Q1
Marathon Petroleum (MPC) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased relative to the prior year but decreased sequentially. Gross margin improved substantially year-over-year and showed a modest improvement sequentially, driven by a larger proportionate decline in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased relative to the prior year but decreased sequentially. Gross margin improved substantially year-over-year and showed a modest improvement sequentially, driven by a larger proportionate decline in cost of revenue relative to revenue.
- The strongest observable margin driver is the reduction in cost of revenue, which fell more sharply than revenue on both a sequential and year-over-year basis, leading to margin expansion.
- Compared to the immediately preceding quarter, gross margin edged higher despite lower revenue and gross profit, as cost of revenue declined at a faster rate. Compared to the same quarter one year earlier, gross margin improved significantly, with gross profit rising while both revenue and cost of revenue fell.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.0%
Gross profit
$5.6B
Revenue
$34.9B
Cost of revenue
$29.3B
Quarter-over-quarter change
n/a
Year-over-year change
+8.1 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 | $34.9B | $5.6B | $29.3B | 16.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+8.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue, which fell more sharply than revenue on both a sequential and year-over-year basis, leading to margin expansion.
Compared to the immediately preceding quarter, gross margin edged higher despite lower revenue and gross profit, as cost of revenue declined at a faster rate. Compared to the same quarter one year earlier, gross margin improved significantly, with gross profit rising while both revenue and cost of revenue fell.
Monitor the trajectory of cost of revenue, as its relative movement against revenue has been the primary factor in margin changes.