Marathon Petroleum Corporation stock research
FY2023 Q3
Marathon Petroleum (MPC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased from the prior quarter, while cost of revenue also rose. Gross margin improved compared to the prior quarter but weakened relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased from the prior quarter, while cost of revenue also rose. Gross margin improved compared to the prior quarter but weakened relative to the same quarter one year earlier.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue from the prior quarter, leading to an improved gross margin. However, compared to the year-ago quarter, cost of revenue declined less than revenue, resulting in a lower gross margin.
- Compared to the prior quarter, gross margin was higher, driven by a proportionally larger increase in revenue relative to cost of revenue. Compared to the same quarter one year earlier, gross margin was lower, as revenue decreased more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.6%
Gross profit
$6.0B
Revenue
$40.9B
Cost of revenue
$34.9B
Quarter-over-quarter change
+2.0 pts
Year-over-year change
-0.6 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% |
| Jun 30, 2023 | $36.3B | $4.6B | $31.8B | 12.6% |
| Sep 30, 2023 | $40.9B | $6.0B | $34.9B | 14.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.0 pts
Year-over-year change
Sep 30, 2022
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue from the prior quarter, leading to an improved gross margin. However, compared to the year-ago quarter, cost of revenue declined less than revenue, resulting in a lower gross margin.
Compared to the prior quarter, gross margin was higher, driven by a proportionally larger increase in revenue relative to cost of revenue. Compared to the same quarter one year earlier, gross margin was lower, as revenue decreased more than cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as its slower decline year-over-year contributed to the weakened gross margin.