PPG Industries, Inc. stock research
FY2023 Q1
PPG Industries (PPG) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased quarter over quarter and was roughly stable year over year. Gross profit and gross margin both improved compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but higher than the previous quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased quarter over quarter and was roughly stable year over year. Gross profit and gross margin both improved compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but higher than the previous quarter.
- The relationship among revenue, gross profit, cost of revenue, and gross margin shows that gross margin strengthened as gross profit grew faster than revenue, with cost of revenue declining on a year-over-year basis. The most observable driver is the improvement in gross margin relative to both comparison periods.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved significantly. Versus the same quarter one year earlier, revenue was slightly higher, gross profit was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.7%
Gross profit
$1.8B
Revenue
$4.4B
Cost of revenue
$2.6B
Quarter-over-quarter change
n/a
Year-over-year change
+3.4 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 | $4.4B | $1.8B | $2.6B | 40.7% |
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
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, gross profit, cost of revenue, and gross margin shows that gross margin strengthened as gross profit grew faster than revenue, with cost of revenue declining on a year-over-year basis. The most observable driver is the improvement in gross margin relative to both comparison periods.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved significantly. Versus the same quarter one year earlier, revenue was slightly higher, gross profit was higher, and gross margin improved.
Monitor the trajectory of cost of revenue, which decreased year over year but increased sequentially, as its movement directly affects gross margin stability.