Cardinal Health Inc (CAH)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 219,413,000 | 198,123,000 | 174,819,000 | 155,689,000 | 146,054,000 |
| Inventory | US$ in thousands | 14,957,000 | 16,119,000 | 15,636,000 | 14,594,000 | 13,198,000 |
| Inventory turnover | 14.67 | 12.29 | 11.18 | 10.67 | 11.07 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $219,413,000K ÷ $14,957,000K
= 14.67
The inventory turnover ratio for Cardinal Health Inc has exhibited an increasing trend over the past five years, indicating an improvement in the efficiency of managing its inventory levels. The ratio has increased from 11.07 in 2020 to 14.67 in 2024, suggesting that the company is able to turn over its inventory approximately 14.67 times in a year, up from 11.07 times in 2020. This indicates that the company has been more effective in selling its inventory or managing its inventory levels efficiently during the period under consideration. Overall, the increasing inventory turnover ratio reflects positively on Cardinal Health Inc's inventory management practices and operational efficiency.
Peer comparison
Jun 30, 2024