Executive Summary
Cardinal Health reported QQ4 2024 revenue of $59.708 billion, with a gross profit of $1.853 billion and a gross margin of 3.02%. Operating income was $408 million and net income stood at $236 million, yielding EPS of $0.96. The quarter delivered meaningful year-over-year improvements: revenue up 11.7% and net income up 468% versus the prior year, driven by scale in the Pharmaceutical and Medical segments and disciplined cost management. EBITDA reached $578 million, supporting cash generation that remains a defining feature of Cardinal Health’s model.
Cash flow remained robust in QQ4 2024. Cash from operations was $2.077 billion and free cash flow was $1.884 billion, underscoring a capital allocation framework that prioritizes liquidity and shareholder distributions. The company ended the period with $5.133 billion in cash and cash equivalents and a net debt position of roughly -$41 million, reflecting a strong liquidity reserve against modest debt. The balance sheet shows elevated goodwill and intangible assets totaling about $6.45 billion, contributing to negative reported equity of approximately -$3.213 billion, an accounting presentation that does not reflect short-term solvency given the substantial cash cushion and low near-term leverage.
Liquidity and working capital efficiency are evident: days sales outstanding around 18.2 days, days inventory outstanding about 23.3 days, and a cash conversion cycle of approximately -7.9 days, driven by favorable payables terms. However, gross margins remain tight in Cardinal Health’s traditional distribution-centric business, which constrains operating leverage and drives continued emphasis on cash flow generation and capital allocation. Management commentary for QQ4 2024 is not included in the provided data; consequently, this summary relies on the reported figures and typical sector dynamics to analyze the quarter’s implications for investors.
Key Performance Indicators
QoQ: 10.57% | YoY:197.81%
QoQ: -9.58% | YoY:468.75%
QoQ: -10.28% | YoY:484.00%
Key Insights
Revenue: $59.708 billion; YoY +11.70%; QoQ +8.82%
Gross Profit: $1.853 billion; YoY +1.42%; QoQ -4.24%; Gross Margin: 3.02%
Operating Income: $408 million; YoY +197.81%; QoQ +10.57% ; Operating Margin: ~0.68%
Net Income: $236 million; YoY +468.75%; QoQ -9.58%; Net Margin: 0.39%
EPS: $0.96; YoY +484.00%; QoQ -10.28%
EBITDA: $578 million; EBITDA Margin: ~0.97%
Balance Sheet Highlights: Cash and cash equivalents $5.133B; Net cash position (net debt) around -$41 million; Total assets $45.121B; Total...
Financial Highlights
Revenue: $59.708 billion; YoY +11.70%; QoQ +8.82%
Gross Profit: $1.853 billion; YoY +1.42%; QoQ -4.24%; Gross Margin: 3.02%
Operating Income: $408 million; YoY +197.81%; QoQ +10.57% ; Operating Margin: ~0.68%
Net Income: $236 million; YoY +468.75%; QoQ -9.58%; Net Margin: 0.39%
EPS: $0.96; YoY +484.00%; QoQ -10.28%
EBITDA: $578 million; EBITDA Margin: ~0.97%
Balance Sheet Highlights: Cash and cash equivalents $5.133B; Net cash position (net debt) around -$41 million; Total assets $45.121B; Total liabilities $48.333B; Total stockholders’ equity: -$3.213B; Current ratio 0.979; Quick ratio 0.559; Cash ratio 0.144
Cash Flow: Net income $235M; Depreciation & amortization $186M; Change in working capital +$1.738B; CFO $2.078B; Capex ($193M); Free cash flow $1.884B; Cash at end of period $5.133B; Free cash flow per share $7.72; Operating cash flow per share $8.51
Liquidity and Leverage: Short-term debt $434M; Long-term debt $4.658B; Total debt $5.092B; Net debt: -$41M; Dividend payout ratio 51.7%; Dividend paid $122M; Enterprise value multiple ~40.34x; P/E ~25.27x; P/B and other valuation multiples reflect negative book value due to accounting equity
Efficiency: Receivables turnover 4.94x; Inventory turnover 3.87x; Asset turnover 1.323x; Cash conversion cycle -7.90 days
Notes: All figures in USD. Percent changes are year-over-year (YoY) or quarter-over-quarter (QoQ) as reported.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
59.71B |
11.70% |
8.82% |
| Gross Profit |
1.85B |
1.42% |
-4.24% |
| Operating Income |
408.00M |
197.81% |
10.57% |
| Net Income |
236.00M |
468.75% |
-9.58% |
| EPS |
0.96 |
484.00% |
-10.28% |
Key Financial Ratios
operatingProfitMargin
0.68%
operatingCashFlowPerShare
$8.51
freeCashFlowPerShare
$7.72
dividendPayoutRatio
51.7%
Management Commentary
transcriptHighlights: Not available in the provided data. The earnings transcript is empty, and no management quotes are included to anchor qualitative commentary for QQ4 2024.
Forward Guidance
Forward guidance is not provided in the supplied materials. Based on the QQ4 2024 results, investors should assess the following potential drivers and risks:
- Potential drivers: continued free cash flow generation supports sustainable dividends and selective capital allocation; scale in the Pharmaceutical and Medical segments may yield operating leverage if cost control and mix optimization improve margins; strong balance sheet liquidity provides flexibility in a consolidating healthcare distribution landscape.
- Key uncertainties: persistently low gross margins in the core distribution business, payer mix and reimbursement dynamics, competition among healthcare distributors, and macro headwinds affecting hospital capital expenditure and supply chain efficiency.
- Monitoring points: trajectory of gross and operating margins, changes in working capital efficiency, any shifts in capital allocation policy (dividends vs. share repurchases vs. debt repayment or acquisitions), and regional mix changes (U.S. vs. international exposure). Investors should also watch for any regulatory or reimbursement reforms that could impact margins or growth opportunities.