Cardinal Health Inc (CAH)
Number of days of payables
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.91 | 6.62 | 6.44 | 6.57 | 6.83 | |
| Number of days of payables | days | 52.83 | 55.15 | 56.64 | 55.56 | 53.42 |
June 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.91
= 52.83
Cardinal Health Inc's number of days of payables has shown a decreasing trend over the past five years, indicating that the company is taking fewer days to pay its suppliers. This trend suggests that Cardinal Health is managing its payables more efficiently, potentially negotiating better terms with suppliers or improving its cash flow management. The reduction in the number of days of payables can positively impact the company's working capital and overall liquidity position. However, it is essential for Cardinal Health to strike a balance in managing its payables to maintain good relationships with suppliers while optimizing its cash flow.
Peer comparison
Jun 30, 2024