01—Abstract
Summary
Summary of the 10-K filed January 24, 2025. Cited figures are marked; the original filing is the authoritative source.
TD SYNNEX Corporation, a Fortune 100 global distributor and solutions aggregator for the IT ecosystem, reported fiscal 2024 (year ended November 30, 2024) revenue of $58.45 billiona, up from $57.56 billion in fiscal 2023.
Gross profit was $3.98 billionb (GAAP gross margin 6.81%), operating income rose to $1.19 billion from $1.08 billion, and net income was $689.1 million, or $7.95 diluted EPS, versus $6.70 a year earlier. Management attributed the revenue increase primarily to growth in the Advanced Solutions portfolio, partly offset by additional net-basis revenue presentation from product mix. Non-GAAP operating income slightly decreased to $1.63 billion, which the company attributed to lower strategic technologies gross margins and higher personnel costs.
Cash flow and balance sheet items were mixed. Net cash provided by operating activities was $1.22 billionc, versus $1.41 billion in fiscal 2023, and the cash conversion cycle improved to 18 days from 23. Total borrowings were approximately $3.9 billion, and cash and cash equivalents totaled $1.06 billion.
The company repurchased $611.9 milliond of common stock during fiscal 2024 and had $1.8 billion remaining available under its share repurchase program. Cash dividends declared were $1.60 per share for the year, and a quarterly dividend of $0.44 per share was announced in January 2025.
The filing also highlights risk factors and legal matters, including dependence on Apple, which represented 12% of fiscal 2024 revenue, and a cybersecurity incident disclosed in November 2024 involving a partner of a wholly owned subsidiary, which the company does not believe has had a material impact to date. The company also reported a French Competition Authority matter, reduced on appeal to €24.9 million, which it continues to contest.
02—Key points
Key Highlights
- Revenue of $58.45 billion in fiscal 2024, up from $57.56 billion in fiscal 2023; constant-currency revenue increased 1.3%.
- Net income of $689.1 million and diluted EPS of $7.95, compared with $626.9 million and $6.70 in fiscal 2023.
- Operating income of $1.19 billion (2.04% operating margin), up 10.8%, driven mainly by lower acquisition, integration and restructuring costs.
- Non-GAAP operating income of $1.63 billion, slightly down from $1.64 billion, reflecting lower strategic technologies gross margins and higher personnel costs.
- Operating cash flow of $1.22 billion; cash conversion cycle improved to 18 days from 23 days.
- Approximately $3.9 billion in total borrowings and $1.8 billion remaining under the share repurchase program; $611.9 million repurchased during fiscal 2024.
- Apple, Inc. accounted for 12% of fiscal 2024 revenue, and one customer accounted for 12% of total revenue.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, TD Synnex kept $0.01.
- Revenue$58.45B100.0%
- Cost of revenue−$54.47B93.2%
- Gross profit$3.98B6.8%
- Operating costs−$2.79B4.8%
- Operating income$1.19B2.0%
- Interest, other & tax−$505.1M0.9%
- Net income$689.1M1.2%
Where FY2024 revenue went
$58.45B- Cost of revenue: $54.47B, 93% of revenue
- Net income: $689.1M, 1.2% of revenue
- SG&A: $2.72B, 4.6% of revenue
- Interest, other & tax: $505.1M, 0.9% of revenue
Kept 1.2% as net incomeNet income $689.1M · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed January 24, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $58.45B$57.56B | +1.6% |
| Cost of Revenue | $54.47B$53.60B | +1.6% |
| Gross Profit | $3.98B$3.96B | +0.6% |
| SG&A Expenses | $2.72B$2.67B | +1.6% |
| Operating Income | $1.19B$1.08B | +10.8% |
| Net Income | $689.09M$626.91M | +9.9% |
| EPS (Basic) | $7.99$6.72 | +18.9% |
| EPS (Diluted) | $7.95$6.70 | +18.7% |
| Shares Outstanding (Basic) | 85.49M92.57M | −7.6% |
| Shares Outstanding (Diluted) | 85.87M92.85M | −7.5% |
05—Questions
Frequently Asked Questions
How did TD SYNNEX perform financially in fiscal 2024?
Revenue rose 1.6% to $58.45 billion, gross profit was $3.98 billion, operating income increased to $1.19 billion, and net income was $689.1 million, or $7.95 per diluted share, compared with $6.70 in fiscal 2023.
What drove the change in revenue and margins?
The company attributed revenue growth primarily to its Advanced Solutions portfolio. Presenting additional revenue on a net basis due to product mix negatively affected revenue growth by approximately $1.2 billion, or 2%. GAAP gross margin slightly decreased to 6.81% from 6.87%, mainly due to higher strategic technologies margins in the prior year period.
How much debt does the company carry and what liquidity is available?
Total borrowings were approximately $3.9 billion as of November 30, 2024, including $2.4 billion of Senior Notes. The company had $3.5 billion in unused commitments under its TD SYNNEX Revolving Credit Facility and $1.06 billion in cash and cash equivalents.
What shareholder returns did the company provide?
The company declared $1.60 per share in dividends during fiscal 2024 and repurchased 5.5 million shares for $611.9 million. On January 10, 2025, it announced a quarterly cash dividend of $0.44 per share payable January 31, 2025. As of November 30, 2024, $1.8 billion remained available for repurchases.
What are the key risks highlighted in the filing?
Key risks include dependence on a small number of OEM suppliers, notably Apple and HP; low gross margins; customer concentration; inventory value declines; foreign currency exposure, with about 47% of fiscal 2024 revenue generated outside the United States; and cybersecurity threats, including a November 2024 unauthorized access incident at a partner of a subsidiary that the company does not believe has had a material impact.
06—Continue