Cardinal Health, Inc. stock research
FY2024 Q4
Cardinal Health (CAH) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased from both the prior quarter and the same quarter last year, while gross profit was higher year-over-year but unchanged sequentially. Cost of revenue grew at a faster pace than revenue, causing gross margin to decline compared to both periods.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q4
Revenue increased from both the prior quarter and the same quarter last year, while gross profit was higher year-over-year but unchanged sequentially. Cost of revenue grew at a faster pace than revenue, causing gross margin to decline compared to both periods.
- The strongest observable driver is the relative increase in cost of revenue, which consumed a larger share of revenue in the current quarter than in either the prior quarter or the year-ago quarter.
- Sequentially, gross margin weakened as revenue rose but gross profit remained flat. Year-over-year, gross margin was lower even though both revenue and gross profit increased, due to a proportionally larger rise in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.1%
Gross profit
$1.9B
Revenue
$59.9B
Cost of revenue
$58.0B
Quarter-over-quarter change
-0.4 pts
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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $59.9B | $1.9B | $58.0B | 3.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.4 pts
Year-over-year change
Jun 30, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relative increase in cost of revenue, which consumed a larger share of revenue in the current quarter than in either the prior quarter or the year-ago quarter.
Sequentially, gross margin weakened as revenue rose but gross profit remained flat. Year-over-year, gross margin was lower even though both revenue and gross profit increased, due to a proportionally larger rise in cost of revenue.
Monitor the trend of cost of revenue relative to revenue, as its ratio has been the primary factor in the gross margin compression.