CD

CDW Corporation stock research

Sep 30, 2024

FY2024 Q3

CDW (CDW) Gross Margin — Quarter Ended Sep 30, 2024

In the current quarter, gross profit equaled revenue minus cost of revenue, and gross margin represented gross profit as a share of revenue. Compared with the preceding quarter, revenue was slightly higher while gross profit was similar, yielding an unchanged gross margin; versus the same quarter one year earlier, revenue was lower while gross profit was again similar, also resulting in a stable margin.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

In the current quarter, gross profit equaled revenue minus cost of revenue, and gross margin represented gross profit as a share of revenue. Compared with the preceding quarter, revenue was slightly higher while gross profit was similar, yielding an unchanged gross margin; versus the same quarter one year earlier, revenue was lower while gross profit was again similar, also resulting in a stable margin.

  • The most notable observable driver is the consistent gross margin percentage across the current quarter, the preceding quarter, and the same quarter one year earlier, indicating that cost of revenue and revenue moved in proportion.
  • Gross margin remained unchanged from both the preceding quarter and the same quarter one year earlier. Revenue was slightly higher sequentially but lower year-over-year, while gross profit was essentially flat across all three periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

21.8%

Gross profit

$1.2B

Revenue

$5.5B

Cost of revenue

$4.3B

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.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$5.0B$1.2B$3.9B23.0%
Mar 31, 2024$4.9B$1.1B$3.8B21.8%
Jun 30, 2024$5.4B$1.2B$4.2B21.8%
Sep 30, 2024$5.5B$1.2B$4.3B21.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-0.0 pts

Year-over-year change

Sep 30, 2023

-0.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most notable observable driver is the consistent gross margin percentage across the current quarter, the preceding quarter, and the same quarter one year earlier, indicating that cost of revenue and revenue moved in proportion.

Gross margin remained unchanged from both the preceding quarter and the same quarter one year earlier. Revenue was slightly higher sequentially but lower year-over-year, while gross profit was essentially flat across all three periods.

Monitor the relationship between cost of revenue and revenue for any deviation from the current proportional pattern.

CDW Gross Margin — Quarter Ended Sep 30, 2024