Cardinal Health, Inc. stock research
FY2023 Q3
Cardinal Health (CAH) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased compared to the prior quarter, while gross profit increased, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was higher, gross profit was slightly higher, and gross margin was lower.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q3
Revenue decreased compared to the prior quarter, while gross profit increased, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was higher, gross profit was slightly higher, and gross margin was lower.
- The gross margin improved sequentially as gross profit grew despite a decline in revenue, indicating a favorable shift in the relationship between cost of revenue and revenue. The year-over-year decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin improved from 3.3% to 3.5%, as gross profit increased while revenue decreased. Compared to the same quarter last year, gross margin weakened from 3.8% to 3.5%, as revenue grew faster than gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.5%
Gross profit
$1.8B
Revenue
$50.5B
Cost of revenue
$48.7B
Quarter-over-quarter change
n/a
Year-over-year change
-0.2 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 | $50.5B | $1.8B | $48.7B | 3.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as gross profit grew despite a decline in revenue, indicating a favorable shift in the relationship between cost of revenue and revenue. The year-over-year decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue.
Compared to the prior quarter, gross margin improved from 3.3% to 3.5%, as gross profit increased while revenue decreased. Compared to the same quarter last year, gross margin weakened from 3.8% to 3.5%, as revenue grew faster than gross profit.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion increased year-over-year and compressed gross margin.