Merck & Co., Inc. stock research
FY2023 Q4
Merck & (MRK) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased from the prior quarter but increased compared with the same quarter last year. Gross margin remained stable sequentially and improved year-over-year, as cost of revenue declined relative to gross profit in the annual comparison.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased from the prior quarter but increased compared with the same quarter last year. Gross margin remained stable sequentially and improved year-over-year, as cost of revenue declined relative to gross profit in the annual comparison.
- The strongest observable margin driver is the stable gross margin at the same level as the prior quarter, indicating consistent cost efficiency relative to revenue. The year-over-year improvement in gross margin is driven by a higher gross profit relative to cost of revenue.
- Compared with the prior quarter, revenue and gross profit were lower while gross margin was unchanged. Compared with the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.3%
Gross profit
$10.7B
Revenue
$14.6B
Cost of revenue
$3.9B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+1.3 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 | $14.5B | $10.6B | $3.9B | 72.9% |
| Jun 30, 2023 | $15.0B | $11.0B | $4.0B | 73.2% |
| Sep 30, 2023 | $16.0B | $11.7B | $4.3B | 73.3% |
| Dec 31, 2023 | $14.6B | $10.7B | $3.9B | 73.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.0 pts
Year-over-year change
Dec 31, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the stable gross margin at the same level as the prior quarter, indicating consistent cost efficiency relative to revenue. The year-over-year improvement in gross margin is driven by a higher gross profit relative to cost of revenue.
Compared with the prior quarter, revenue and gross profit were lower while gross margin was unchanged. Compared with the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue, as it remained stable sequentially but declined in the annual comparison, supporting margin improvement.