Cardinal Health Inc (CAH)
Inventory turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 214,410,000 | 219,413,000 | 198,123,000 | 174,819,000 | 155,689,000 |
| Inventory | US$ in thousands | 16,831,000 | 14,957,000 | 16,119,000 | 15,636,000 | 14,594,000 |
| Inventory turnover | 12.74 | 14.67 | 12.29 | 11.18 | 10.67 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $214,410,000K ÷ $16,831,000K
= 12.74
The inventory turnover ratio for Cardinal Health Inc demonstrated a consistent upward trend over the specified period, reflecting improvements in inventory management efficiency. Specifically, as of June 30, 2021, the ratio was 10.67, indicating the company sold and replaced its inventory approximately 10.67 times during that fiscal year. This ratio increased modestly to 11.18 by June 30, 2022, suggesting a slight enhancement in inventory efficiency.
The upward trajectory continued more significantly through June 30, 2023, with the ratio rising to 12.29, thereby indicating an increased frequency of inventory turnover—an indicator of more effective inventory control or higher sales volume relative to inventory levels. The trend accelerated further in the subsequent year, with the ratio reaching 14.67 by June 30, 2024. This represents a notable improvement, implying that the company was able to sell and replenish its inventory approximately 14.67 times during that period, which is a positive sign of operational efficiency.
However, in the fiscal year ending June 30, 2025, the inventory turnover ratio slightly declined to 12.74. While still above the levels observed in the prior years, this decrease may suggest a marginal slowdown in inventory selling or potential changes in inventory management strategies or market conditions.
Overall, the data indicates that Cardinal Health Inc has experienced a period of increasing inventory turnover over multiple years, signaling enhanced inventory management efficiency and possibly improved sales performance. The slight reduction in the most recent year warrants further analysis to determine whether it reflects seasonal variations, strategic changes, or external market factors impacting inventory dynamics.
Peer comparison
Jun 30, 2025