Cardinal Health Inc (CAH)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 18.76 19.06 18.33 18.65 18.46 18.07 16.90 16.94 17.17 17.25 18.21 17.99 17.85 17.94 17.93 17.91 18.50 17.03 18.07 18.03
Payables turnover 6.91 6.64 6.10 6.44 6.62 6.49 6.20 6.36 6.44 6.87 6.65 6.86 6.57 6.61 6.43 6.81 6.83 6.67 6.66 7.14
Working capital turnover — — — — — 199.87 139.46 164.47 76.04 81.53 41.59 51.79 47.45 31.07 35.86 51.31 65.77 130.49 176.90 126.64

The activity ratios for Cardinal Health Inc indicate the efficiency and effectiveness of its inventory management, accounts receivable collection, accounts payable management, and working capital utilization over the specified time periods.

1. Inventory Turnover: Cardinal Health Inc's inventory turnover has been relatively stable, ranging from 10.35 to 14.67 times during the periods analyzed. This indicates that the company efficiently converts its inventory into sales. A higher turnover ratio generally indicates efficient inventory management.

2. Receivables Turnover: The company's receivables turnover ratio has been fairly consistent, ranging from 16.90 to 19.06 times. This suggests that Cardinal Health Inc has been effective in collecting outstanding receivables from customers, with a higher turnover ratio indicating a shorter time to collect on sales.

3. Payables Turnover: Cardinal Health Inc's payables turnover has also been relatively stable, ranging from 6.10 to 7.14 times. This indicates how quickly the company pays its suppliers, and a higher ratio reflects a shorter period of time taken to pay off payables.

4. Working Capital Turnover: The data for the working capital turnover ratio is missing for some periods but shows significant variability where available. This ratio measures how effectively the company is using its working capital to generate revenue. A higher turnover ratio indicates better utilization of working capital.

In conclusion, Cardinal Health Inc has demonstrated efficiency in managing its inventory, collecting receivables, and paying its suppliers based on the calculated activity ratios. However, the missing data for working capital turnover limits a comprehensive analysis of the company's overall working capital management efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 24.88 29.58 32.24 30.52 29.70 31.60 33.80 32.14 32.65 33.18 33.10 33.44 34.21 34.94 35.27 33.20 32.98 31.88 35.26 32.29
Days of sales outstanding (DSO) days 19.46 19.15 19.92 19.57 19.78 20.19 21.60 21.55 21.25 21.16 20.04 20.29 20.45 20.34 20.36 20.39 19.72 21.43 20.19 20.24
Number of days of payables days 52.83 54.94 59.85 56.67 55.15 56.27 58.89 57.36 56.64 53.16 54.86 53.18 55.56 55.21 56.73 53.58 53.42 54.72 54.84 51.13

Days of inventory on hand (DOH) for Cardinal Health Inc has shown slight fluctuations over the past two years, ranging from a low of 24.88 days to a high of 35.27 days. The trend indicates that the company has been able to manage its inventory levels efficiently, with a slight increase in the most recent quarter. This implies that Cardinal Health has been able to maintain a balanced inventory level relative to its sales volume.

Days of sales outstanding (DSO) have also remained relatively stable, hovering around the 19 to 21-day range over the same period. This suggests that Cardinal Health has been efficient in collecting its accounts receivable, indicating good credit management practices.

The number of days of payables for Cardinal Health has shown some variability but has generally been around the 53 to 60-day range. This indicates that the company takes around 53 to 60 days on average to pay its suppliers. A longer payables period suggests better cash flow management, as the company can hold onto cash for a longer period before making payments.

Overall, Cardinal Health Inc's activity ratios reflect a balanced approach to managing its inventory, accounts receivable, and accounts payable, which is crucial for maintaining healthy working capital and liquidity levels.

Long-term

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
Fixed asset turnover 89.63 89.24 88.33 86.06 83.31 84.11 82.45 79.95 76.82 76.96 73.80 71.65 68.84 67.63 65.57 65.28 64.63 66.81 65.04 63.54
Total asset turnover 5.02 4.80 4.64 4.81 4.73 4.58 4.34 4.31 4.13 4.20 3.92 3.89 3.65 3.57 3.50 3.71 3.75 3.73 3.65 3.77

Cardinal Health Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, have shown varying trends over the past several quarters. The fixed asset turnover ratio has fluctuated slightly within a relatively narrow range, indicating the company's ability to generate sales from its fixed assets. However, there has been a gradual increase in fixed asset turnover, suggesting improved efficiency in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown more fluctuations over the same period. While the ratio has generally been above 3.5, indicating that Cardinal Health Inc is generating revenue efficiently relative to its total assets, there have been some quarters where the ratio dipped slightly. This could imply temporary inefficiencies in utilizing all of its assets to generate sales.

Overall, Cardinal Health Inc's long-term activity ratios suggest that the company has been efficient in generating sales relative to its assets. The increasing trend in fixed asset turnover and the generally stable total asset turnover indicate a positive operational performance in terms of asset utilization and productivity.