01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
CDW Corporation reported 2024 Net sales of $20.99 billiona, down from $21.38 billion in 2023, with a decrease primarily due to lower netcomm sales partially offset by higher notebooks/mobile devices.
Gross profit was $4.60 billionb (21.9% gross margin, up from 21.8%), and operating income was $1.65 billion (7.9% operating margin, flat year over year). Net income was $1.08 billion, or $7.97 per diluted share, compared with $1.10 billion and $8.10 in 2023. Management attributed the sales decline to cautious customer technology spending amid economic uncertainty.
Cash flow weakened in 2024, with net cash provided by operating activities of $1.28 billionc versus $1.60 billion in 2023, and adjusted free cash flow of $1.08 billion versus $1.43 billion. Total debt outstanding was $5.8 billion at year-end, and the company had $1.2 billion of availability under its Revolving Loan Facility. The company repurchased $500 million of stock during 2024, and on February 5, 2025 its Board authorized a $750 million increase to the share repurchase program and declared a quarterly dividend of $0.625 per share.
The filing also discloses a Civil Investigative Demand from the US Department of Justice dated June 11, 2024, relating to a False Claims Act investigation concerning bids submitted for contracts funded through the E-Rate Program. The company states it is cooperating and cannot yet assess the probability or range of any loss. Management highlights ongoing investment in AI, cloud and security offerings, along with an ERP system implementation expected to be released in 2025.
02—Key points
Key Highlights
- Net sales declined 1.8% to $20.99 billion in 2024 from $21.38 billion in 2023, with lower sales across all operating segments.
- Gross profit margin rose to 21.9% from 21.8%, driven by a higher contribution of netted down revenue, partially offset by product mix in notebooks/mobile devices.
- Operating income was $1.65 billion (7.9% margin), down 1.8% from $1.68 billion; non-GAAP operating income was $1.95 billion (9.3% margin).
- Diluted EPS was $7.97 versus $8.10 in 2023; non-GAAP diluted EPS was $9.52 versus $9.88.
- Net cash provided by operating activities fell to $1.28 billion from $1.60 billion, and adjusted free cash flow declined to $1.08 billion from $1.43 billion.
- Total debt was $5.8 billion at December 31, 2024, and the company issued $1.2 billion of senior notes in 2024 ($600 million due 2030 and $600 million due 2034).
- The Board authorized a $750 million increase to the share repurchase program and declared a $0.625 quarterly dividend on February 5, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, CDW kept $0.05.
- Revenue$21.00B100.0%
- Cost of revenue−$16.40B78.1%
- Gross profit$4.60B21.9%
- Operating costs−$2.95B14.1%
- Operating income$1.65B7.9%
- Interest, other & tax−$573.5M2.7%
- Net income$1.08B5.1%
Where FY2024 revenue went
$21.00B- Cost of revenue: $16.40B, 78% of revenue
- SG&A: $2.95B, 14% of revenue
- Net income: $1.08B, 5.1% of revenue
- Interest, other & tax: $573.5M, 2.7% of revenue
Kept 5.1% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $21.00B$21.38B | −1.8% |
| Cost of Revenue | $16.40B$16.72B | −2.0% |
| Gross Profit | $4.60B$4.65B | −1.1% |
| SG&A Expenses | $2.95B$2.97B | −0.7% |
| Operating Income | $1.65B$1.68B | −1.8% |
| Net Income | $1.08B$1.10B | −2.4% |
| EPS (Basic) | $8.06$8.20 | −1.7% |
| EPS (Diluted) | $7.97$8.10 | −1.6% |
| Shares Outstanding (Basic) | 133.80M134.60M | −0.6% |
| Shares Outstanding (Diluted) | 135.20M136.30M | −0.8% |
05—Questions
Frequently Asked Questions
Why did CDW's net sales decline in 2024?
The filing states that net sales decreased $377 million, or 1.8%, primarily due to a decrease in netcomm products, partially offset by an increase in notebooks/mobile devices. Management attributes the decline to customers being cautious and measured in their technology spending amid continued economic uncertainty.
What is the status of the Department of Justice investigation?
The company received a Civil Investigative Demand from the DOJ on June 11, 2024, in connection with a False Claims Act investigation concerning bids submitted for contracts funded in whole or in part by the Schools and Libraries Program (E-Rate Program). The company is cooperating and, at this stage, is unable to assess the probability of any outcome or the range of possible loss.
How is CDW returning capital to shareholders?
In 2024, CDW paid $332.1 million in dividends and repurchased 2.4 million shares for $500 million. In February 2025, the Board declared a quarterly dividend of $0.625 per share payable March 11, 2025, and authorized a $750 million increase to the share repurchase program, which was incremental to approximately $588 million remaining as of December 31, 2024.
How did CDW's segments perform in 2024?
Corporate segment net sales were $8.84 billion, down 1.4%, with operating income rising 3.9% to $879.5 million. Public segment net sales were $8.16 billion, down 1.8%, with operating income of $745.9 million. Small Business net sales were $1.52 billion, down 2.1%, and the Other segment (CDW UK and CDW Canada) net sales were $2.48 billion, down 2.9%.
What is CDW's debt position and liquidity?
As of December 31, 2024, CDW had $5.8 billion of total debt outstanding and $355 million of obligations under inventory financing agreements, with $1.2 billion available to borrow under its Revolving Loan Facility. The company stated it was in compliance with its debt covenants and believes it has adequate liquidity for at least the next year.
06—Continue