CDW Corporation has recently released its 10-K report, providing a comprehensive overview of its financial performance for the year ended December 31, 2024. The company operates in the information technology solutions sector, serving various segments including Corporate, Small Business, Public, and others in the United States, the United Kingdom, and Canada. CDW offers a wide range of IT products and services, including hardware, software, and integrated solutions, catering to the evolving technology needs of its diverse customer base.
In the year ended December 31, 2024, CDW reported net sales of $20,998.7 million, representing a slight decrease of 1.8% from the previous year. The company's gross profit amounted to $4,602.4 million, with a gross profit margin of 21.9%, showing a marginal improvement from the previous year. Operating income stood at $1,651.3 million, with an operating income margin of 7.9%. CDW also reported a net income of $1,077.8 million, translating to a diluted net income per share of $7.97.
The company closely monitors key business metrics, including average daily sales, net cash provided by operating activities, adjusted free cash flow, and net debt. Notably, CDW's net cash provided by operating activities decreased to $1,277.3 million in 2024 from $1,598.7 million in 2023, while adjusted free cash flow declined to $1,079.0 million from $1,426.8 million during the same period. Additionally, the company's net debt increased to $5,125.1 million in 2024 from $5,056.2 million in 2023.
CDW's segment results of operations revealed a decline in net sales across all operating segments, with the Corporate segment experiencing a 1.4% decrease, the Small Business segment declining by 2.1%, and the Public segment decreasing by 1.8%. Despite the challenges in net sales, the company managed to maintain relatively consistent gross profit margins across its segments.
The report also highlighted CDW's use of non-GAAP financial measures, such as non-GAAP operating income, non-GAAP net income, and net sales on a constant currency basis, to provide a clearer understanding of the company's underlying operating performance.
As a result of these announcements, the company's shares have moved -3.3% on the market, and are now trading at a price of $186.5. For the full picture, make sure to review CDW's 10-K report.
