MP

Marathon Petroleum Corporation stock research

Mar 31, 2024

FY2024 Q1

Marathon Petroleum (MPC) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Cost of revenue declined less than revenue, resulting in a lower gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Cost of revenue declined less than revenue, resulting in a lower gross margin.

  • The gross margin weakened sequentially and year-over-year, driven by a proportionally smaller decline in cost of revenue relative to revenue.
  • Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue was lower, gross profit was substantially lower, and gross margin weakened notably.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

9.5%

Gross profit

$3.1B

Revenue

$32.7B

Cost of revenue

$29.6B

Quarter-over-quarter change

-0.6 pts

Year-over-year change

-6.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$36.3B$4.6B$31.8B12.6%
Sep 30, 2023$40.9B$6.0B$34.9B14.6%
Dec 31, 2023$36.3B$3.7B$32.6B10.1%
Mar 31, 2024$32.7B$3.1B$29.6B9.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

-0.6 pts

Year-over-year change

Mar 31, 2023

-6.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin weakened sequentially and year-over-year, driven by a proportionally smaller decline in cost of revenue relative to revenue.

Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue was lower, gross profit was substantially lower, and gross margin weakened notably.

Monitor the trend in cost of revenue relative to revenue, as its slower decline compressed gross margin.

MPC Gross Margin — Quarter Ended Mar 31, 2024