Cardinal Health Inc (CAH)
Days of inventory on hand (DOH)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 14.67 | 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 | 11.07 | 11.45 | 10.35 | 11.30 | |
| DOH | days | 24.88 | 29.58 | 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 | 32.98 | 31.88 | 35.26 | 32.29 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.67
= 24.88
The Days of Inventory on Hand (DOH) for Cardinal Health Inc has exhibited fluctuations over the past few years. In the most recent quarter, ending June 30, 2024, the company had 24.88 days of inventory on hand, representing a decrease from the previous quarter's level of 29.58 days. This indicates that the company managed its inventory more efficiently during this period.
Looking back over the last two years, there appears to be a general trend of decreasing DOH, suggesting improved inventory management practices within the organization. However, there have been periods where the DOH increased, such as in the fourth quarter of 2020 and the first quarter of 2021.
The average DOH over the past few years has been around 32 days, indicating that Cardinal Health typically maintains around a month's worth of inventory on hand. It is essential for the company to strike a balance between having enough inventory to meet demand and avoiding excess carrying costs associated with holding excess inventory.
Overall, the analysis of Cardinal Health Inc's Days of Inventory on Hand suggests a pattern of fluctuations with a general trend towards more efficient inventory management practices, although there have been periods of deviation from this trend. Monitoring and managing inventory levels effectively will be crucial for the company to optimize its working capital and overall operational efficiency.
Peer comparison
Jun 30, 2024