Summary of QQ3 2024 results for Cardinal Health shows revenue resilience amid ongoing margin pressures and liquidity considerations. The quarter delivered revenue of $54.868 billion with gross profit of $1.935 billion, yielding a gross margin of approximately 3.4% and an operating margin around 0.7%. Net income of $261 million and earnings per share (EPS) of $1.07 reflect modest profitability in a highly competitive healthcare distribution landscape. Year-over-year (YoY) revenue rose about 8.7%, but both operating income and net income declined on a relative basis, with QoQ declines also evident, underscoring margin compression and cost dynamics affecting profit translation.
Balance sheet and cash flow metrics reveal a cash-rich balance sheet but a structurally leveraged equity position. The company holds cash and cash equivalents of $3.72 billion and reports net debt of roughly $2.14 billion, while total liabilities exceed assets by about $4.26 billion, resulting in negative stockholders’ equity (~$-3.27 billion). Operating cash flow was negative in the quarter (-$49 million) and free cash flow was also negative (-$161 million), driven by working capital changes (-$588 million) and capital expenditures of $112 million. Financing activities provided liquidity (~$1.03 billion), contributing to overall liquidity management. Payout ratio stands at 47.3%, signaling a relatively income-focused dividend policy amid the balance sheet dynamics.
Looking ahead, the near-term outlook remains a function of ongoing margin discipline, working capital optimization, and balance sheet restructuring. The competitive and regulatory environment in healthcare distribution remains challenging, with limited visibility on explicit forward guidance in the provided data. Investors should monitor margin stabilization, cash flow generation, and deleveraging progress, alongside portfolio optimization initiatives that could unlock earnings upside over time.