Republic Services, Inc. stock research
FY2023 Q4
Republic Services (RSG) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue remained unchanged, resulting in a higher gross margin. Versus the same quarter a year earlier, both revenue and gross profit grew, with gross profit rising faster than cost of revenue, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue remained unchanged, resulting in a higher gross margin. Versus the same quarter a year earlier, both revenue and gross profit grew, with gross profit rising faster than cost of revenue, leading to an improved gross margin.
- Gross margin improved from the prior quarter and the year-ago quarter, with gross profit increasing while cost of revenue held steady sequentially and grew at a slower pace year over year.
- Compared to the immediately preceding quarter, gross margin was higher as gross profit increased while cost of revenue remained stable. Compared to the same quarter one year earlier, gross margin was higher with revenue and gross profit both up, and gross profit growing more relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.9%
Gross profit
$1.6B
Revenue
$3.8B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+2.7 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 | $3.6B | $1.4B | $2.2B | 39.4% |
| Jun 30, 2023 | $3.7B | $1.5B | $2.2B | 40.3% |
| Sep 30, 2023 | $3.8B | $1.5B | $2.3B | 40.3% |
| Dec 31, 2023 | $3.8B | $1.6B | $2.3B | 40.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.6 pts
Year-over-year change
Dec 31, 2022
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved from the prior quarter and the year-ago quarter, with gross profit increasing while cost of revenue held steady sequentially and grew at a slower pace year over year.
Compared to the immediately preceding quarter, gross margin was higher as gross profit increased while cost of revenue remained stable. Compared to the same quarter one year earlier, gross margin was higher with revenue and gross profit both up, and gross profit growing more relative to cost of revenue.
Monitor the trend of cost of revenue relative to revenue, as it remained unchanged from the prior quarter despite stable revenue.