Cardinal Health Inc (CAH)
Working capital turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 222,578,000 | 222,286,000 | 222,319,000 | 224,500,000 | 226,986,000 | 220,572,000 | 216,148,000 | 210,172,000 | 205,012,000 | 198,662,000 | 193,011,000 | 186,999,000 | 181,364,000 | 176,847,000 | 171,286,000 | 167,370,000 | 162,467,000 | 156,570,000 | 156,452,000 | 154,646,000 |
| Total current assets | US$ in thousands | 36,373,000 | 34,595,000 | 35,756,000 | 32,905,000 | 34,884,000 | 35,734,000 | 37,658,000 | 34,688,000 | 33,737,000 | 33,497,000 | 34,596,000 | 32,696,000 | 32,935,000 | 30,884,000 | 31,847,000 | 29,731,000 | 31,048,000 | 30,362,000 | 30,113,000 | 27,030,000 |
| Total current liabilities | US$ in thousands | 38,897,000 | 36,662,000 | 35,223,000 | 34,678,000 | 35,640,000 | 36,306,000 | 38,286,000 | 35,065,000 | 33,740,000 | 32,503,000 | 33,212,000 | 31,559,000 | 30,550,000 | 28,715,000 | 27,729,000 | 26,499,000 | 27,624,000 | 25,323,000 | 25,750,000 | 24,016,000 |
| Working capital turnover | — | — | 417.11 | — | — | — | — | — | — | 199.86 | 139.46 | 164.47 | 76.04 | 81.53 | 41.59 | 51.79 | 47.45 | 31.07 | 35.86 | 51.31 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $222,578,000K ÷ ($36,373,000K – $38,897,000K)
= —
The working capital turnover ratios of Cardinal Health Inc. from September 30, 2020, to December 31, 2024, reveal notable fluctuations over this period, indicating varying levels of operational efficiency in utilizing working capital to generate sales.
Initially, during the fiscal year ending September 30, 2020, the ratio stood at 51.31. It experienced a decline in the subsequent quarter, reaching 35.86 at the end of 2020, followed by a further decrease to 31.07 by the end of March 2021. This downward trend suggests a period where the company's ability to generate sales from its working capital was diminishing, potentially due to operational challenges or changes in working capital management.
In the latter half of 2021, the ratio rebounded to 47.45 in June and further increased to 51.79 by September 30, 2021. This recovery indicates improved efficiency in using working capital to support sales, possibly reflecting operational improvements or optimized working capital policies.
The ratio then declined again to 41.59 at the end of December 2021, followed by a significant surge to 81.53 in March 2022, and a slight decrease to 76.04 in June 2022. Throughout 2022, the ratio displayed substantial increases, with a remarkable peak at 164.47 as of September 30, 2022. This sharp rise suggests a heightened efficiency or a change in the company's operational dynamics, likely reflecting more aggressive utilization of working capital in support of sales growth.
Subsequently, the ratio decreased to 139.46 at the end of December 2022 and further to 199.86 by March 2023, indicating continued high levels of efficiency or possible structural changes that increased sales relative to working capital. However, data beyond March 2023 is unavailable, with the ratio only resuming in December 2024 at a remarkably high level of 417.11, signifying an exceptional improvement in working capital turnover.
Overall, the pattern indicates periods of both decline and significant improvement in working capital efficiency. The sharp increase in the ratio starting in late 2022 through 2024 may reflect strategic operational shifts, a change in working capital management practices, or extraordinary sales growth relative to working capital. These fluctuations underscore the importance of considering underlying operational, industry, and strategic factors influencing the company's ability to optimize its working capital investments over time.
Peer comparison
Jun 30, 2025