Revenue Analysis
Total and Operating Revenue: CAH’s operating revenue has seen fluctuations over the past three years. The numbers show a slight increase from $54.87 billion in Mar 2023 to $55.14 billion in 2024. However, a peak is observed in Dec 2023 at $57.445 billion. This indicates variability but suggests potential growth areas in business operations.
Gross Profit Margin: The gross profit shows an incremental trend from $1.785 billion in Mar 2023 to $1.947 billion in Mar 2024. This increase in gross profit suggests that CAH has been slightly improving its efficiency in managing the cost of sales relative to its revenue.
Cost Management
Cost of Revenue: The cost of revenue was significantly high, maintaining levels close to or above $52 billion through the period, with a peak at $55.99 billion in Dec 2023, mirroring the revenue patterns.
Operating Expenses: Operating expenses have broadly remained stable, ranging from $1.253 billion in Mar 2023 to $1.362 billion in Mar 2024. This stable operational cost management supports maintaining profitability.
Total Expenses: The total expenses have risen proportionally with revenue, from $49.93 billion in Mar 2023 to $54.33 billion in 2024. It peaked at $56.94 billion in Dec 2023, directly correlating with the highest revenue recorded.
Profitability Analysis
EBITDA: EBITDA fluctuated, with lows in Sep 2023 at $160 million, potentially due to operational challenges, and reaching highs of $769 million in Mar 2024. Such trends highlight variable operating performance and possible impacts from market or internal factors.
Operating Income: Operating income improved from $532 million in Mar 2023 to $585 million in Mar 2024, but not without facing inconsistencies, notably a negative operating income in Sep 2023. This suggests challenges in managing operational profitability efficiently throughout the period.
Pretax Income: Pretax income was highest in Mar 2024 at $341 million, showing recovery from a loss position in Sep 2023. Such dynamics indicate fluctuating financial management efficacy.
Net Income: Net income ranged from a significant loss in Sep 2023 to positive outcomes, reaching $258 million in Mar 2024. Net income metrics point to the recovery capabilities of CAH but also suggest vulnerability to adverse conditions.
Cash Flow Indicators
Reconciled Depreciation: Generally stable, depreciation signifies consistent investment in capital and depreciation methods, with a slight increase over the years.
Interest Expense: Interest expenses have remained consistent, signaling stable debt management without significant increases in borrowing costs.
Taxation
Tax Rate: Variations in the tax rate from 21% to over 36% over the periods reflect changes in either tax policy impacts or differences in taxable income composition.
Tax Provisions: The tax provision indicates a reasonable management of tax liabilities, in line with pre-tax earnings, despite fluctuations in income.
Tax Effect of Unusual Items: Significant tax effects from unusual items, especially the negative impacts observed, suggest material events affecting financial results and tax treatment.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share have seen significant variance, from a low in Sep 2023 at $0.02 to a high of $1.43 in Dec 2023, evidencing the instability in earnings available to shareholders.
Average Shares: The number of shares has had minor fluctuations, reflecting a relatively stable equity base without significant dilutive activities.
Net Income Available to Common Stockholders: Net income available to common stockholders mirrors the net income trends, directly affecting shareholder value perception.
Conclusion
CAH’s financial performance over the past three years indicates resilience with moments of robust performance interspersed with challenging periods. Ongoing efficiency in cost management and improved revenue streams could contribute to stabilizing profitability metrics. Strategic efforts should continue focusing on enhancing operational outputs, managing unusual items more effectively, and maintaining prudent fiscal management.