Breaking Down TD SYNNEX Corporation (SNX) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on TD SYNNEX Corporation (SNX)? Have you been wondering about the financial stability and growth potential of this IT giant? Let's delve into the key financial insights from the fiscal year 2024, offering a clear picture of where TD SYNNEX stands today. Did you know that TD SYNNEX reported a revenue of $58.5 billion for fiscal year 2024, a 1.6% increase from the previous year? The company's net income also saw a healthy rise, reaching $689 million, up 9.92% from 2023. But what about their assets, liabilities, and overall financial strategy? Read on to uncover these crucial details and gain a comprehensive understanding of TD SYNNEX's financial health.

TD SYNNEX Corporation (SNX) Revenue Analysis

TD SYNNEX Corporation's financial health can be better understood through an analysis of its revenue streams. This involves examining where the company's revenue comes from, how quickly it's growing, and the relative importance of its different business segments.

TD SYNNEX Corporation operates in two segments: Technology Solutions and Concentrix. The Technology Solutions segment distributes IT products and solutions. Concentrix, before its separation on December 1, 2023, provided customer experience (CX) solutions and technology.

Understanding the sources of revenue for TD SYNNEX is crucial. Here's a breakdown:

• Products: A significant portion of TD SYNNEX's revenue comes from the distribution of a wide array of IT products, including hardware and software.
• Services: The company also generates revenue through services such as cloud solutions, professional services, and support services.
• Regions: TD SYNNEX operates globally, with revenue streams diversified across North America, Europe, and Asia-Pacific.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and market position. Here's what to consider:

• Historical Trends: Examining revenue growth over the past few years can reveal whether the company is experiencing consistent growth, decline, or cyclical patterns.
• Percentage Increase/Decrease: The revenue growth rate is typically expressed as a percentage, indicating the extent to which revenue has increased or decreased compared to the previous year.

To fully understand the revenue picture, it's important to look at how each business segment contributes to the overall revenue. In fiscal year 2024, TD SYNNEX reported:

• Net revenue of $57.6 billion
• The Technology Solutions segment net revenue was $57.6 billion.

Significant changes in revenue streams can indicate strategic shifts, market disruptions, or the impact of specific events. Here are some factors to consider:

• Acquisitions and Divestitures: Changes in the company's portfolio of businesses can significantly impact revenue streams. For example, the spin-off of Concentrix on December 1, 2023, has resulted in revenue from CX solutions no longer being included in TD SYNNEX's financial results for fiscal year 2024.
• Market Trends: Shifts in technology demand, competitive pressures, and macroeconomic conditions can all influence revenue streams.

Here's a table summarizing key revenue information for TD SYNNEX in fiscal year 2024:

For more insights into the core values and strategic direction of the company, check out: Mission Statement, Vision, & Core Values of TD SYNNEX Corporation (SNX).

TD SYNNEX Corporation (SNX) Profitability Metrics

Analyzing TD SYNNEX Corporation's (SNX) profitability involves looking at several key metrics to understand how efficiently the company generates profit from its revenue. These metrics include gross profit, operating profit, and net profit margins, which provide insights into the company's financial health and operational effectiveness.

For the fiscal year 2024, TD SYNNEX Corporation reported a gross profit of $4.2 billion. This represents the revenue remaining after deducting the cost of goods sold, indicating how efficiently the company manages its production costs. The gross margin, calculated as gross profit divided by revenue, stood at 6.6% for the same period. This percentage reflects the proportion of revenue that the company retains after covering the direct costs associated with producing goods or services.

The operating profit for 2024 was $777.1 million. This figure is derived by subtracting operating expenses, such as administrative and sales costs, from the gross profit. The operating margin, which is operating profit divided by revenue, was 1.2%. This margin illustrates the company's profitability from its core business operations, excluding interest and taxes.

Net profit, often referred to as the bottom line, amounted to $551.8 million in 2024. This is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. The net profit margin, calculated as net profit divided by revenue, was 0.9%. This margin provides a comprehensive view of the company's overall profitability.

Here's a summary of TD SYNNEX Corporation's profitability metrics for 2024:

Analyzing these profitability metrics over time can reveal trends and patterns in TD SYNNEX Corporation's financial performance. Comparing these ratios with industry averages provides a benchmark to assess the company's relative profitability and efficiency. For instance, if TD SYNNEX Corporation's gross margin is consistently lower than the industry average, it may indicate issues with cost management or pricing strategies.

Operational efficiency is critical in determining TD SYNNEX Corporation's profitability. Effective cost management and favorable gross margin trends can significantly impact the company's bottom line. Monitoring these aspects helps investors understand how well the company manages its resources and operations to generate profit.

Further insights into the financial health of TD SYNNEX Corporation can be found at: Breaking Down TD SYNNEX Corporation (SNX) Financial Health: Key Insights for Investors

TD SYNNEX Corporation (SNX) Debt vs. Equity Structure

Understanding how TD SYNNEX Corporation (SNX) manages its debt and equity is crucial for investors assessing its financial health and growth potential. This involves looking at the company's debt levels, its debt-to-equity ratio compared to industry standards, and any recent financing activities.

As of the end of fiscal year 2024, TD SYNNEX Corporation (SNX) exhibited the following debt profile:

• Long-term debt: Specific figures for long-term debt are essential to understanding the company’s extended financial obligations.
• Short-term debt: Details on the company's short-term debt would provide insights into its immediate liabilities and liquidity.

Precise data on these components would enable a clearer assessment of TD SYNNEX's debt structure.

The debt-to-equity ratio is a key metric for evaluating TD SYNNEX Corporation (SNX)'s financial leverage. A review of the most current data is essential to determine this ratio. In general, this ratio indicates the proportion of debt and equity used to finance the company’s assets. To provide a meaningful perspective, it's important to compare TD SYNNEX Corporation (SNX)'s ratio with industry averages, which can vary significantly. For example, the technology sector may have different benchmarks compared to distribution or services sectors.

Recent activities in debt financing can significantly impact TD SYNNEX Corporation (SNX)'s capital structure. This includes:

• Debt Issuances: Any new bonds or loans issued.
• Credit Ratings: Updates from agencies like Standard & Poor's, Moody's, or Fitch.
• Refinancing Activities: Actions taken to restructure existing debt for better terms.

Monitoring these activities provides insights into TD SYNNEX Corporation (SNX)'s strategies for managing its debt and capitalizing on favorable market conditions.

TD SYNNEX Corporation (SNX) must strategically balance debt and equity to fund its operations and growth. Too much debt can increase financial risk, while relying solely on equity might limit growth potential. Evaluating how TD SYNNEX Corporation (SNX) navigates this balance helps investors understand its approach to financial management and risk.

To give a clearer picture, here's a hypothetical table presenting a snapshot of TD SYNNEX Corporation (SNX)'s debt and equity structure (Note: This is for illustrative purposes only and should be replaced with actual data):

For further insights into the corporate direction, consider reviewing the Mission Statement, Vision, & Core Values of TD SYNNEX Corporation (SNX).

TD SYNNEX Corporation (SNX) Liquidity and Solvency

Analyzing TD SYNNEX Corporation's (SNX) liquidity involves scrutinizing its ability to meet short-term obligations. Key metrics such as current and quick ratios provide insights into its liquidity position, while trends in working capital management and cash flow statements offer a broader perspective.

Here's a breakdown:

• Current Ratio: The current ratio, calculated by dividing current assets by current liabilities, is a fundamental metric for assessing liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, excludes inventories from current assets, offering a more conservative view of liquidity.
• Working Capital: Monitoring trends in working capital—the difference between current assets and current liabilities—reveals how efficiently TD SYNNEX Corporation (SNX) manages its short-term resources.

The cash flow statement is essential for understanding TD SYNNEX Corporation's (SNX) liquidity. It is generally broken down into three parts:

• Operating Activities: Cash flow from operating activities reflects the cash generated or used by the company's core business operations.
• Investing Activities: This section details cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Financing activities involve cash flow related to debt, equity, and dividends.

A review of TD SYNNEX Corporation's (SNX) financial statements can reveal the following:

Based on the 2023 fiscal year, TD SYNNEX Corporation (SNX) showcased a strong operating cash flow of $1,149.4 million, which is a significant increase compared to $577.9 million in 2022. Investing activities used $258.2 million in 2023, and financing activities resulted in a cash outflow of $850.6 million. Overall, the net change in cash for 2023 was an increase of $40.6 million.

For more insights into TD SYNNEX Corporation (SNX), consider exploring their Mission Statement, Vision, & Core Values of TD SYNNEX Corporation (SNX).

TD SYNNEX Corporation (SNX) Valuation Analysis

Assessing whether TD SYNNEX Corporation (SNX) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, and analyst consensus.

Currently, TD SYNNEX presents a mixed valuation picture:

• P/E Ratio: As of January 31, 2025, TD SYNNEX's trailing twelve months (TTM) P/E ratio stands at 11.7x.
• Forward P/E Ratio: The forward P/E ratio, estimated at 10.2x, suggests potential earnings growth in the near term.
• PEG Ratio: The PEG ratio is 1.18x.

These metrics indicate how much investors are willing to pay for each dollar of TD SYNNEX’s earnings. Compared to industry peers, these ratios can provide insights into whether the stock is trading at a premium or discount.

Analyzing TD SYNNEX's stock performance over the past year offers context on market sentiment and investor confidence:

• 1-Year Price Change: As of April 18, 2025, TD SYNNEX's stock has increased by 32.88% over the past year.

Here is a snapshot of TD SYNNEX's key valuation ratios:

Analyst consensus provides a summarized view of expert opinions on TD SYNNEX's stock. These ratings typically range from 'strong buy' to 'sell,' reflecting collective expectations regarding the stock's future performance.

• Analyst Recommendation: The consensus rating is 'hold.'

For deeper insights into the investors behind TD SYNNEX, explore Exploring TD SYNNEX Corporation (SNX) Investor Profile: Who’s Buying and Why?.

TD SYNNEX Corporation (SNX) Risk Factors

Understanding the risks facing TD SYNNEX Corporation (SNX) is crucial for investors assessing the company's financial health and future prospects. These risks span internal operational challenges, external market pressures, and strategic considerations that could impact the company's performance.

Here's an overview of key risks and potential mitigation strategies:

• Industry Competition: The technology distribution market is highly competitive. TD SYNNEX faces competition from other large distributors, direct sales by manufacturers, and emerging online marketplaces. Increased competition could lead to price compression, reduced margins, and loss of market share.
• Regulatory Changes: Changes in regulations related to trade, data privacy, cybersecurity, and environmental compliance can significantly impact TD SYNNEX's operations and financial results. Adapting to these changes requires ongoing investment in compliance programs and may increase operating costs.
• Market Conditions: Economic downturns, geopolitical instability, and fluctuations in currency exchange rates can affect demand for IT products and services. These factors can disrupt supply chains, reduce sales, and negatively impact profitability.

Operational, financial, and strategic risks highlighted in recent earnings reports and filings include:

• Integration Risks: As TD SYNNEX grows through acquisitions, integrating acquired businesses can pose significant challenges. These include integrating IT systems, aligning corporate cultures, and retaining key personnel. Failure to effectively integrate acquisitions can lead to operational inefficiencies and financial losses.
• Cybersecurity Threats: TD SYNNEX handles large volumes of sensitive data, making it a target for cyberattacks. A successful cyberattack could result in data breaches, disruption of operations, and reputational damage, leading to financial losses and legal liabilities.
• Supply Chain Disruptions: Disruptions to the global supply chain, such as those caused by natural disasters, pandemics, or geopolitical events, can impact TD SYNNEX's ability to procure and distribute products. These disruptions can lead to increased costs, delays in delivery, and reduced sales.

Mitigation strategies or plans that TD SYNNEX may employ to address these risks include:

• Diversification: Diversifying its product and service offerings, customer base, and geographic presence can help TD SYNNEX reduce its reliance on any single market or customer. This can mitigate the impact of economic downturns or changes in demand.
• Investment in Cybersecurity: Investing in advanced cybersecurity technologies and training programs can help TD SYNNEX protect its systems and data from cyberattacks. This includes implementing robust security protocols, monitoring for threats, and conducting regular security audits.
• Supply Chain Management: Implementing robust supply chain management practices, such as diversifying suppliers, building buffer inventory, and developing contingency plans, can help TD SYNNEX mitigate the impact of supply chain disruptions.
• Compliance Programs: Establishing comprehensive compliance programs to ensure adherence to relevant laws and regulations can help TD SYNNEX avoid legal and regulatory penalties. This includes monitoring changes in regulations, providing training to employees, and conducting regular audits.

Here is a table summarizing potential risks and mitigation strategies:

For more insights into TD SYNNEX Corporation's (SNX) financial health, you can read: Breaking Down TD SYNNEX Corporation (SNX) Financial Health: Key Insights for Investors.

TD SYNNEX Corporation (SNX) Growth Opportunities

TD SYNNEX Corporation (SNX) demonstrates strong future growth prospects driven by several key factors. These include strategic acquisitions, expansions into high-growth markets, and innovative product and service offerings designed to meet the evolving needs of its customer base. The company's focus on cloud solutions, cybersecurity, and data analytics positions it well to capitalize on current market trends.

Analysis of key growth drivers:

• Product Innovations: TD SYNNEX is focused on expanding its offerings in high-growth areas such as hybrid cloud, cybersecurity, and IoT solutions.
• Market Expansions: The company continues to extend its global reach, particularly in the Asia-Pacific region, to tap into emerging markets.
• Acquisitions: Strategic acquisitions, such as the acquisition of Tech Data in 2021, have significantly expanded TD SYNNEX's market share and service capabilities.

Future revenue growth projections and earnings estimates:

While exact revenue growth projections and earnings estimates can fluctuate based on market conditions and company-specific developments, analysts generally expect TD SYNNEX to maintain a steady growth trajectory. For instance, the fiscal year 2024 saw TD SYNNEX generate revenue of approximately $57.6 billion. Future growth is expected to be fueled by continued demand for IT solutions and services, particularly in cloud computing and cybersecurity.

Strategic initiatives and partnerships that may drive future growth:

TD SYNNEX's strategic initiatives and partnerships are crucial for driving future growth. These include:

• Expanding Cloud Solutions: Enhancing capabilities in hybrid and multi-cloud environments.
• Cybersecurity Focus: Investing in cybersecurity solutions to address growing threats.
• Strategic Partnerships: Collaborating with leading technology vendors to offer comprehensive solutions.

Competitive advantages that position the company for growth:

TD SYNNEX possesses several competitive advantages that support its growth prospects:

• Scale and Reach: As one of the largest IT distributors globally, TD SYNNEX benefits from economies of scale and extensive market reach.
• Diverse Portfolio: A broad range of products and services reduces dependence on any single market segment.
• Strong Vendor Relationships: Established partnerships with major technology vendors provide access to cutting-edge solutions.

A detailed look at TD SYNNEX's financial performance can be seen in the following table, illustrating key financial metrics:

These figures highlight TD SYNNEX's robust financial health and its capacity to invest in future growth initiatives. The company's strategic focus and strong market position should enable it to sustain growth in the coming years.

For more insights into TD SYNNEX's investor profile, see: Exploring TD SYNNEX Corporation (SNX) Investor Profile: Who’s Buying and Why?