PPG Industries, Inc. stock research
FY2023 Q1
PPG Industries (PPG) Gross Margin — Quarter Ended Jun 30, 2023
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue and gross profit were higher, while cost of revenue also increased, but gross profit rose at a faster rate than cost of revenue, leading to stronger margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q1
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue and gross profit were higher, while cost of revenue also increased, but gross profit rose at a faster rate than cost of revenue, leading to stronger margin.
- The primary observed margin driver is the relative growth of gross profit compared to cost of revenue, with gross profit increasing more rapidly than cost of revenue.
- Compared to the immediately preceding quarter, gross margin was slightly higher; compared to the same quarter one year earlier, gross margin was notably higher. Revenue was higher in both comparisons, and gross profit rose relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.2%
Gross profit
$2.0B
Revenue
$4.9B
Cost of revenue
$2.9B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+3.8 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% |
| Jun 30, 2023 | $4.9B | $2.0B | $2.9B | 41.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.4 pts
Year-over-year change
Mar 31, 2022
+3.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observed margin driver is the relative growth of gross profit compared to cost of revenue, with gross profit increasing more rapidly than cost of revenue.
Compared to the immediately preceding quarter, gross margin was slightly higher; compared to the same quarter one year earlier, gross margin was notably higher. Revenue was higher in both comparisons, and gross profit rose relative to cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as its growth rate can influence future gross margin.