Waste Management, Inc. stock research
FY2023 Q3
Waste Management (WM) Gross Margin — Quarter Ended Sep 30, 2023
The quarter's revenue increased while cost of revenue remained stable, resulting in higher gross profit and an improved gross margin. Compared to both the prior quarter and the same quarter last year, the margin strengthened as revenue growth outpaced cost.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
The quarter's revenue increased while cost of revenue remained stable, resulting in higher gross profit and an improved gross margin. Compared to both the prior quarter and the same quarter last year, the margin strengthened as revenue growth outpaced cost.
- The improvement in gross margin was driven by revenue rising while cost of revenue held steady, widening the gap between revenue and cost.
- Gross margin improved to a higher level than in the prior quarter and the same quarter a year ago, as revenue increased while cost of revenue was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.7%
Gross profit
$2.0B
Revenue
$5.2B
Cost of revenue
$3.2B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.9 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 | $4.9B | $1.8B | $3.1B | 36.9% |
| Jun 30, 2023 | $5.1B | $1.9B | $3.2B | 37.8% |
| Sep 30, 2023 | $5.2B | $2.0B | $3.2B | 38.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.9 pts
Year-over-year change
Sep 30, 2022
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue rising while cost of revenue held steady, widening the gap between revenue and cost.
Gross margin improved to a higher level than in the prior quarter and the same quarter a year ago, as revenue increased while cost of revenue was unchanged.
Monitor whether cost of revenue remains stable in future quarters, as any increase could pressure margins.