Phillips 66 stock research
FY2023 Q4
Phillips 66 (PSX) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue also declined. Gross profit and gross margin weakened versus both comparison periods, reflecting a tighter spread between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue also declined. Gross profit and gross margin weakened versus both comparison periods, reflecting a tighter spread between revenue and cost of revenue.
- The decline in gross profit was proportionally larger than the decline in revenue, indicating that cost of revenue did not fall as quickly as revenue. This compressed gross margin relative to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.6%
Gross profit
$4.4B
Revenue
$38.3B
Cost of revenue
$33.8B
Quarter-over-quarter change
-1.8 pts
Year-over-year change
-1.2 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 | $34.4B | $5.1B | $29.3B | 14.7% |
| Jun 30, 2023 | $35.1B | $4.5B | $30.6B | 12.9% |
| Sep 30, 2023 | $39.6B | $5.3B | $34.3B | 13.4% |
| Dec 31, 2023 | $38.3B | $4.4B | $33.8B | 11.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.8 pts
Year-over-year change
Dec 31, 2022
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit was proportionally larger than the decline in revenue, indicating that cost of revenue did not fall as quickly as revenue. This compressed gross margin relative to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin weakened.
Monitor whether cost of revenue continues to decline at a slower pace than revenue, as this dynamic directly affects gross margin direction.