CVS Health Corporation stock research
FY2023 Q4
CVS Health (CVS) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but the gross margin improved year-over-year while weakening slightly sequentially, reflecting different rates of change in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but the gross margin improved year-over-year while weakening slightly sequentially, reflecting different rates of change in cost of revenue relative to revenue.
- The year-over-year gross margin improvement is the most notable observable driver, as gross profit grew at a faster pace than revenue. Sequentially, the margin declined because cost of revenue increased more rapidly than revenue.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.8%
Gross profit
$36.4B
Revenue
$93.8B
Cost of revenue
$57.4B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.5 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, 2023 | $85.3B | $33.8B | $51.5B | 39.7% |
| Jun 30, 2023 | $88.9B | $35.4B | $53.5B | 39.8% |
| Sep 30, 2023 | $89.8B | $35.1B | $54.7B | 39.1% |
| Dec 31, 2023 | $93.8B | $36.4B | $57.4B | 38.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.3 pts
Year-over-year change
Dec 31, 2022
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year gross margin improvement is the most notable observable driver, as gross profit grew at a faster pace than revenue. Sequentially, the margin declined because cost of revenue increased more rapidly than revenue.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as sequential margin compression suggests a need to assess cost management.