Cardinal Health, Inc. stock research
FY2024 Q3
Cardinal Health (CAH) Gross Margin — Quarter Ended Mar 31, 2024
Revenue declined from the prior quarter, but grew compared to the same quarter last year. Gross profit held steady sequentially and rose year-over-year, while cost of revenue moved in the same direction; gross margin strengthened sequentially and remained stable year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue declined from the prior quarter, but grew compared to the same quarter last year. Gross profit held steady sequentially and rose year-over-year, while cost of revenue moved in the same direction; gross margin strengthened sequentially and remained stable year-over-year.
- The sequential gross margin increase reflects that cost of revenue declined proportionally more than revenue, while the year-over-year stability indicates that the proportional relationship between revenue and cost of revenue remained consistent.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.5%
Gross profit
$1.9B
Revenue
$54.9B
Cost of revenue
$52.9B
Quarter-over-quarter change
+0.3 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $54.9B | $1.9B | $52.9B | 3.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.3 pts
Year-over-year change
Mar 31, 2023
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin increase reflects that cost of revenue declined proportionally more than revenue, while the year-over-year stability indicates that the proportional relationship between revenue and cost of revenue remained consistent.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was stable.
Monitor the impact of the company's recent organizational realignment on its cost structure and gross margin trajectory.