Cardinal Health Inc (CAH)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 226,827,000 | 204,979,000 | 181,364,000 | 162,467,000 | 152,922,000 |
| Property, plant and equipment | US$ in thousands | 2,529,000 | 2,461,000 | 2,361,000 | 2,360,000 | 2,366,000 |
| Fixed asset turnover | 89.69 | 83.29 | 76.82 | 68.84 | 64.63 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $226,827,000K ÷ $2,529,000K
= 89.69
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better efficiency in generating sales from investments in fixed assets.
Looking at the trend of Cardinal Health Inc's fixed asset turnover over the past five years, we observe a consistent increase from 64.63 in June 2020 to 89.69 in June 2024. This indicates a positive trend in the company's ability to generate sales from its fixed assets.
The increasing trend in fixed asset turnover suggests that Cardinal Health Inc has been able to improve its operational efficiency and effectively utilize its fixed assets to drive revenue growth over the years. It implies that the company is managing its fixed assets effectively to generate more sales, which is a positive indicator of its operational performance and financial management.
Peer comparison
Jun 30, 2024