Cardinal Health Inc (CAH)
Payables 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 |
| Payables | US$ in thousands | 34,713,000 | 31,759,000 | 29,934,000 | 27,128,000 | 23,700,000 |
| Payables turnover | 6.18 | 6.91 | 6.62 | 6.44 | 6.57 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $214,410,000K ÷ $34,713,000K
= 6.18
The payables turnover ratio for Cardinal Health Inc. over the period from June 30, 2021, to June 30, 2025, exhibits minor fluctuations indicating relative stability in the company’s management of accounts payable relative to its cost of goods sold (COGS).
In Fiscal Year 2021, the payables turnover ratio was 6.57, reflecting the number of times the company’s accounts payable were settled during the year. This ratio slightly decreased to 6.44 in Fiscal Year 2022, suggesting a marginal extension in the average days payable outstanding or a slight slowdown in payment frequency.
By Fiscal Year 2023, the ratio modestly increased to 6.62, indicating a minor acceleration in settling payables or an improvement in payment practices. The upward trend continued into Fiscal Year 2024, where the ratio reached 6.91, representing the highest point in the observed period. This suggests that Cardinal Health Inc. paid its suppliers more frequently or more promptly during this year, possibly reflecting improved liquidity or stronger supplier relationships.
However, in Fiscal Year 2025, the ratio declined to 6.18, indicating a slight reduction in the turnover rate of payables. This reduction might imply a tendency to extend payment periods or a strategic delay in settling payables, which could be motivated by cash flow management considerations or negotiations with suppliers.
Overall, the payables turnover ratio depicts a stable trend with marginal fluctuations, signaling consistent credit management and payment policies over the observed four-year span. The increases and decreases are small, implying a relatively steady approach to managing payables in relation to COGS, without significant deviations that might indicate major shifts in supplier payment terms or liquidity positions.
Peer comparison
Jun 30, 2025