CDW Corporation stock research
FY2024 Q4
CDW (CDW) Gross Margin — Quarter Ended Dec 31, 2024
Gross profit was unchanged across the current quarter, the prior quarter, and the same quarter last year. Revenue decreased from the prior quarter but increased from the same quarter last year, causing the gross margin to move in opposite directions relative to each comparison period.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Gross profit was unchanged across the current quarter, the prior quarter, and the same quarter last year. Revenue decreased from the prior quarter but increased from the same quarter last year, causing the gross margin to move in opposite directions relative to each comparison period.
- The strongest observable driver is the change in cost of revenue relative to revenue. From the prior quarter, cost of revenue declined more than revenue, which was associated with the gross margin improvement. From the same quarter last year, cost of revenue increased more than revenue, associated with the margin decline.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.3%
Gross profit
$1.2B
Revenue
$5.2B
Cost of revenue
$4.0B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
-0.7 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, 2024 | $4.9B | $1.1B | $3.8B | 21.8% |
| Jun 30, 2024 | $5.4B | $1.2B | $4.2B | 21.8% |
| Sep 30, 2024 | $5.5B | $1.2B | $4.3B | 21.8% |
| Dec 31, 2024 | $5.2B | $1.2B | $4.0B | 22.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.5 pts
Year-over-year change
Dec 31, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. From the prior quarter, cost of revenue declined more than revenue, which was associated with the gross margin improvement. From the same quarter last year, cost of revenue increased more than revenue, associated with the margin decline.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trend of cost of revenue relative to revenue, as the margin in the current quarter improved despite lower revenue, but the year-over-year comparison showed a decline.