Cardinal Health Inc (CAH)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 219,413,000 | 213,184,000 | 208,922,000 | 203,129,000 | 198,123,000 | 191,995,000 | 186,447,000 | 180,482,000 | 174,819,000 | 170,432,000 | 164,741,000 | 160,665,000 | 155,689,000 | 149,677,000 | 149,486,000 | 147,742,000 | 146,054,000 | 146,634,000 | 142,826,000 | 140,815,000 |
| Inventory | US$ in thousands | 14,957,000 | 17,277,000 | 18,451,000 | 16,987,000 | 16,119,000 | 16,620,000 | 17,263,000 | 15,891,000 | 15,636,000 | 15,493,000 | 14,941,000 | 14,720,000 | 14,594,000 | 14,329,000 | 14,443,000 | 13,439,000 | 13,198,000 | 12,808,000 | 13,799,000 | 12,458,000 |
| 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 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $219,413,000K ÷ $14,957,000K
= 14.67
The inventory turnover ratio for Cardinal Health Inc has shown fluctuating trends over the past several quarters. The ratio indicates how efficiently the company is managing its inventory by selling and replenishing it.
From Dec 2019 to Jun 2020, the inventory turnover ratio remained relatively stable around 10.35. Subsequently, there was an increase in the ratio, reaching a peak of 14.67 in Jun 2024. This suggests that Cardinal Health has improved its inventory management efficiency over time.
Although there were fluctuations in the ratio, overall, the trend seems to be positive, indicating that the company is turning over its inventory more frequently. This can be beneficial as higher inventory turnover typically implies lower holding costs and less risk of inventory obsolescence.
It is essential for Cardinal Health to continue monitoring and managing its inventory effectively to ensure optimal utilization of resources and maintain a healthy balance between supply and demand.
Peer comparison
Jun 30, 2024
Jun 30, 2024