Occidental Petroleum Corporation stock research
FY2023 Q1
Occidental Petroleum (OXY) Gross Margin — Quarter Ended Mar 31, 2023
Revenue, gross profit, cost of revenue, and gross margin all declined compared to both the prior quarter and the same quarter last year. The decline in gross profit was proportionally larger than the decline in cost of revenue, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue, gross profit, cost of revenue, and gross margin all declined compared to both the prior quarter and the same quarter last year. The decline in gross profit was proportionally larger than the decline in cost of revenue, resulting in a lower gross margin.
- The most observable margin driver is the relationship between gross profit and cost of revenue; gross profit decreased faster than cost of revenue relative to both comparison periods, which directly compressed the gross margin.
- Compared to the preceding quarter, revenue, gross profit, and gross margin were lower while cost of revenue was also lower. Versus the same quarter one year earlier, all four metrics were lower, with gross margin narrower than both prior periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.5%
Gross profit
$6.4B
Revenue
$7.1B
Cost of revenue
$745.0M
Quarter-over-quarter change
n/a
Year-over-year change
-0.5 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 | $7.1B | $6.4B | $745.0M | 89.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the relationship between gross profit and cost of revenue; gross profit decreased faster than cost of revenue relative to both comparison periods, which directly compressed the gross margin.
Compared to the preceding quarter, revenue, gross profit, and gross margin were lower while cost of revenue was also lower. Versus the same quarter one year earlier, all four metrics were lower, with gross margin narrower than both prior periods.
Monitor whether gross profit continues to decline more rapidly than cost of revenue in upcoming quarters, as such a pattern would further pressure gross margin.