Cardinal Health Inc (CAH)
Payables 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 |
| Payables | US$ in thousands | 31,759,000 | 29,934,000 | 27,128,000 | 23,700,000 | 21,374,000 |
| Payables turnover | 6.91 | 6.62 | 6.44 | 6.57 | 6.83 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $219,413,000K ÷ $31,759,000K
= 6.91
The payables turnover ratio for Cardinal Health Inc has shown a consistent trend over the past five years. The ratio has ranged from 6.44 to 6.91, indicating that the company is able to efficiently manage its accounts payables by converting them into purchases or expenses multiple times within a year. This suggests that Cardinal Health Inc is effectively managing its trade credit relationships with suppliers.
The slight fluctuations in the payables turnover ratio from year to year may reflect changes in the company's purchasing practices, payment terms negotiation, or supplier relationships. Overall, a higher payables turnover ratio signifies that the company is paying its suppliers more frequently, potentially benefiting from early payment discounts or effectively managing its working capital.
Cardinal Health Inc's consistent payables turnover ratios indicate its stability in managing its trade payables efficiently, which is a positive signal for investors and stakeholders, showcasing the company's ability to efficiently manage its cash flow and supplier relationships.
Peer comparison
Jun 30, 2024