Cardinal Health, Inc. stock research
FY2024 Q1
Cardinal Health (CAH) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Gross margin weakened from the prior quarter but remained stable compared to the same quarter last year as cost of revenue rose at a faster rate than gross profit.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Gross margin weakened from the prior quarter but remained stable compared to the same quarter last year as cost of revenue rose at a faster rate than gross profit.
- Gross profit was lower than the preceding quarter despite higher revenue, indicating that cost of revenue increased more than proportionally. The strongest observable driver is the relative growth rates of revenue and cost of revenue.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose faster than revenue. Versus the same quarter one year earlier, gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.2%
Gross profit
$1.7B
Revenue
$54.6B
Cost of revenue
$52.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.0 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% |
| Sep 30, 2023 | $54.6B | $1.7B | $52.9B | 3.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.2 pts
Year-over-year change
Sep 30, 2022
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit was lower than the preceding quarter despite higher revenue, indicating that cost of revenue increased more than proportionally. The strongest observable driver is the relative growth rates of revenue and cost of revenue.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose faster than revenue. Versus the same quarter one year earlier, gross margin was unchanged.
Monitor the trend in cost of revenue relative to revenue, as its faster growth drove the margin decline from the prior quarter.