OX

Occidental Petroleum Corporation stock research

Dec 31, 2023

FY2023 Q4

Occidental Petroleum (OXY) Gross Margin — Quarter Ended Dec 31, 2023

In the current quarter, revenue and gross profit decreased while cost of revenue increased, resulting in a lower gross margin compared to both the prior quarter and the same quarter last year.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

In the current quarter, revenue and gross profit decreased while cost of revenue increased, resulting in a lower gross margin compared to both the prior quarter and the same quarter last year.

  • The most notable driver of the margin change was the increase in cost of revenue, which rose while revenue fell, causing gross profit to decline more sharply.
  • Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. The year-ago quarter shows a similar pattern.

Gross margin snapshot

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

Gross margin

60.0%

Gross profit

$1.3B

Revenue

$2.2B

Cost of revenue

$898.0M

Quarter-over-quarter change

-30.7 pts

Year-over-year change

-30.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$7.1B$6.4B$745.0M89.5%
Jun 30, 2023$6.6B$5.8B$791.0M88.0%
Sep 30, 2023$7.3B$6.6B$682.0M90.6%
Dec 31, 2023$2.2B$1.3B$898.0M60.0%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-30.7 pts

Year-over-year change

Dec 31, 2022

-30.6 pts

What the margin says

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

The most notable driver of the margin change was the increase in cost of revenue, which rose while revenue fell, causing gross profit to decline more sharply.

Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. The year-ago quarter shows a similar pattern.

Monitor the trajectory of cost of revenue relative to revenue in upcoming periods.