PPG Industries, Inc. stock research
FY2023 Q4
PPG Industries (PPG) Gross Margin — Quarter Ended Dec 31, 2023
In the current quarter, gross profit increased relative to the same quarter last year, outpacing revenue growth, resulting in an improved gross margin. Sequentially, gross profit declined more sharply than revenue, leading to a lower gross margin compared to the prior quarter.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
In the current quarter, gross profit increased relative to the same quarter last year, outpacing revenue growth, resulting in an improved gross margin. Sequentially, gross profit declined more sharply than revenue, leading to a lower gross margin compared to the prior quarter.
- The year-over-year gross margin improvement was driven by higher revenue while cost of revenue remained unchanged.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$882.0M
Revenue
$2.3B
Cost of revenue
$1.5B
Quarter-over-quarter change
-3.1 pts
Year-over-year change
+7.6 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% |
| Sep 30, 2023 | $4.6B | $1.9B | $2.8B | 40.7% |
| Dec 31, 2023 | $2.3B | $882.0M | $1.5B | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-3.1 pts
Year-over-year change
Dec 31, 2022
+7.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year gross margin improvement was driven by higher revenue while cost of revenue remained unchanged.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the trajectory of revenue and cost of revenue in upcoming quarters, particularly the sustainability of the year-over-year cost stability.