CO

Cencora, Inc. stock research

Dec 31, 2023

FY2024 Q1

Cencora (COR) Gross Margin — Quarter Ended Dec 31, 2023

Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter a year ago. Gross margin improved slightly from the prior quarter and remained unchanged from the year-ago period.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2024 Q1

Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter a year ago. Gross margin improved slightly from the prior quarter and remained unchanged from the year-ago period.

  • The strongest observable margin driver is the rise in revenue relative to the rise in cost of revenue, which produced a slight sequential improvement in gross margin. The filing notes that operating results have generated cash flows and that capital resources are sufficient for ongoing requirements, but does not identify specific margin drivers.
  • Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter a year ago, revenue, gross profit, and cost of revenue were higher, while gross margin was stable.

Gross margin snapshot

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

Gross margin

3.4%

Gross profit

$2.5B

Revenue

$72.3B

Cost of revenue

$69.8B

Quarter-over-quarter change

+0.1 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
Mar 31, 2023$63.5B$2.3B$61.2B3.6%
Jun 30, 2023$66.9B$2.3B$64.7B3.4%
Sep 30, 2023$68.9B$2.3B$66.7B3.3%
Dec 31, 2023$72.3B$2.5B$69.8B3.4%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+0.1 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 strongest observable margin driver is the rise in revenue relative to the rise in cost of revenue, which produced a slight sequential improvement in gross margin. The filing notes that operating results have generated cash flows and that capital resources are sufficient for ongoing requirements, but does not identify specific margin drivers.

Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter a year ago, revenue, gross profit, and cost of revenue were higher, while gross margin was stable.

Monitor the trend in cost of revenue relative to revenue, as it directly determines gross margin; the filing also highlights the company's liquidity and capital resources as supporting factors.

COR Gross Margin — Quarter Ended Dec 31, 2023