Cardinal Health, Inc. stock research
FY2024 Q2
Cardinal Health (CAH) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, with a corresponding rise in gross profit. Cost of revenue grew at a similar rate, leading to a gross margin that was stable versus the prior quarter and slightly lower than the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, with a corresponding rise in gross profit. Cost of revenue grew at a similar rate, leading to a gross margin that was stable versus the prior quarter and slightly lower than the year-ago period.
- The most observable driver is the consistency of the gross margin rate, which held steady from the prior quarter. This reflects a stable relationship between revenue and cost of revenue.
- Compared to the immediately preceding quarter, gross profit improved while the gross margin remained unchanged. Versus the same quarter one year earlier, gross margin weakened slightly despite higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.2%
Gross profit
$1.9B
Revenue
$57.4B
Cost of revenue
$55.6B
Quarter-over-quarter change
+0.0 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% |
| Dec 31, 2023 | $57.4B | $1.9B | $55.6B | 3.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.0 pts
Year-over-year change
Dec 31, 2022
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the consistency of the gross margin rate, which held steady from the prior quarter. This reflects a stable relationship between revenue and cost of revenue.
Compared to the immediately preceding quarter, gross profit improved while the gross margin remained unchanged. Versus the same quarter one year earlier, gross margin weakened slightly despite higher revenue and gross profit.
Monitor the trend in cost of revenue relative to revenue, as the narrow and stable margin suggests limited flexibility.