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.