Marathon Petroleum Corporation stock research
FY2024 Q3
Marathon Petroleum (MPC) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened sequentially and year-over-year, reflecting that gross profit fell faster than revenue relative to cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened sequentially and year-over-year, reflecting that gross profit fell faster than revenue relative to cost of revenue.
- The decline in gross profit relative to revenue was the primary factor behind the gross margin weakening, as cost of revenue did not fall proportionally. The relationship between revenue and cost of revenue drove the margin compression.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, all metrics were lower, with gross margin showing a more pronounced decline.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
8.4%
Gross profit
$3.0B
Revenue
$35.1B
Cost of revenue
$32.1B
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-6.2 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $36.3B | $3.7B | $32.6B | 10.1% |
| Mar 31, 2024 | $32.7B | $3.1B | $29.6B | 9.5% |
| Jun 30, 2024 | $37.9B | $4.0B | $33.9B | 10.5% |
| Sep 30, 2024 | $35.1B | $3.0B | $32.1B | 8.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-2.0 pts
Year-over-year change
Sep 30, 2023
-6.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit relative to revenue was the primary factor behind the gross margin weakening, as cost of revenue did not fall proportionally. The relationship between revenue and cost of revenue drove the margin compression.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, all metrics were lower, with gross margin showing a more pronounced decline.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline contributed to margin compression.