ONEOK, Inc. stock research
FY2023 Q4
ONEOK (OKE) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased from the previous quarter and the same quarter a year earlier, while cost of revenue rose compared to the prior quarter but fell from the year-ago period. As a result, gross margin improved sequentially and year over year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased from the previous quarter and the same quarter a year earlier, while cost of revenue rose compared to the prior quarter but fell from the year-ago period. As a result, gross margin improved sequentially and year over year.
- The strongest observable margin driver is the lower cost of revenue relative to revenue compared with both prior periods, as revenue grew while cost of revenue increased at a slower pace or declined.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared with the same quarter one year earlier, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.9%
Gross profit
$1.9B
Revenue
$5.2B
Cost of revenue
$3.3B
Quarter-over-quarter change
+3.8 pts
Year-over-year change
+14.3 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 | $4.5B | $1.2B | $3.3B | 26.0% |
| Jun 30, 2023 | $3.7B | $1.3B | $2.5B | 33.5% |
| Sep 30, 2023 | $4.2B | $1.4B | $2.8B | 33.2% |
| Dec 31, 2023 | $5.2B | $1.9B | $3.3B | 36.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+3.8 pts
Year-over-year change
Dec 31, 2022
+14.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the lower cost of revenue relative to revenue compared with both prior periods, as revenue grew while cost of revenue increased at a slower pace or declined.
Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared with the same quarter one year earlier, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin was higher.
Monitor the trajectory of cost of revenue in relation to revenue in upcoming quarters to assess whether the margin improvement is sustained.