Cardinal Health Inc (CAH)
Days of inventory on hand (DOH)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 12.74 | 13.28 | 12.71 | 13.90 | 14.69 | 12.34 | 11.32 | 11.96 | 12.29 | 11.55 | 10.80 | 11.36 | 11.18 | 11.00 | 11.03 | 10.91 | 10.67 | 10.45 | 10.35 | 10.99 | |
| DOH | days | 28.65 | 27.49 | 28.73 | 26.26 | 24.85 | 29.57 | 32.24 | 30.52 | 29.70 | 31.60 | 33.80 | 32.14 | 32.65 | 33.18 | 33.10 | 33.44 | 34.21 | 34.94 | 35.27 | 33.20 |
June 30, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.74
= 28.65
The analysis of Cardinal Health Inc.'s days of inventory on hand (DOH) over the specified period reveals a generally stable inventory management approach with some fluctuations. Starting from 33.20 days at the end of September 2020, the DOH increased slightly through December 2020 and March 2021, reaching approximately 35.27 and 34.94 days, respectively. During this period, the inventory levels demonstrated a modest upward trend, potentially reflecting increased inventory holdings or shifts in supply chain dynamics.
Subsequently, the DOH stabilized somewhat around the mid-30-day range, with minor fluctuations until September 2021, when it recorded 33.44 days. This stability persisted into 2022, with figures oscillating narrowly around the low 33 days, such as 33.10 at year-end 2021 and 33.18 in March 2022, indicating consistent inventory turnover practices during these periods.
A subtle decrease in DOH commenced in mid-2022, with values declining to approximately 32.65 days in June 2022 and further to 32.14 days by September 2022. The trend continued into late 2022 and early 2023, with the DOH reaching around 33.80 days at year's end 2022 but decreasing to 31.60 days by March 2023. This reduction suggests improved inventory efficiency during this interval.
Notably, there was a significant drop to 29.70 days in June 2023, indicating a further enhancement in inventory management or a strategic reduction in inventory levels. The DOH slightly increased to 30.52 days by September 2023 but remained below previous levels observed in 2022, signifying sustained efficiency.
Moving into late 2023 and early 2024, the figures depict some variability, with the DOH rising to 32.24 days in December 2023, then decreasing again to 29.57 days in March 2024. A marked reduction occurred through mid-2024, with the DOH reaching 24.85 days in June 2024. This period highlights a notable shift towards leaner inventory levels, potentially aligning with strategic supply chain efficiencies or demand adjustments.
In subsequent quarters, the DOH subtly increased to 26.26 days in September 2024 and to 28.73 days in December 2024 before slightly decreasing again in March 2025 to 27.49 days and rising modestly in June 2025 to 28.65 days. These figures suggest a normalization after the lean inventory period, maintaining an inventory turnover that aligns with industry standards.
Overall, the data indicates that Cardinal Health Inc. has demonstrated the ability to manage inventory effectively, showcasing periods of increased efficiency characterized by reduced DOH, especially in mid-2024. The trend suggests a strategic emphasis on lean inventories to optimize working capital and align inventory levels with operational needs, while maintaining enough buffer to meet customer demand consistently.
Peer comparison
Jun 30, 2025