Cardinal Health, Inc. stock research
FY2023 Q4
Cardinal Health (CAH) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but unchanged sequentially. The gross margin was slightly lower than the prior quarter but higher than the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but unchanged sequentially. The gross margin was slightly lower than the prior quarter but higher than the year-ago period.
- The gross margin is primarily influenced by the proportion of cost of revenue to revenue, which remains large. The small change in gross margin compared to the prior quarter and year-ago period reflects the stable relationship between these two figures.
- Sequentially, the gross margin weakened slightly as revenue grew faster than gross profit. Compared to the same quarter last year, the gross margin improved as gross profit rose more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.4%
Gross profit
$1.8B
Revenue
$53.4B
Cost of revenue
$51.6B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.1 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% |
| Jun 30, 2023 | $53.4B | $1.8B | $51.6B | 3.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.1 pts
Year-over-year change
Jun 30, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin is primarily influenced by the proportion of cost of revenue to revenue, which remains large. The small change in gross margin compared to the prior quarter and year-ago period reflects the stable relationship between these two figures.
Sequentially, the gross margin weakened slightly as revenue grew faster than gross profit. Compared to the same quarter last year, the gross margin improved as gross profit rose more than revenue.
Monitor the trend of gross margin given its narrow range and the large weight of cost of revenue.