Cardinal Health Inc (CAH)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,874,000 | 5,133,000 | 4,076,000 | 4,717,000 | 3,407,000 |
| Short-term investments | US$ in thousands | — | 200,000 | — | — | — |
| Total current liabilities | US$ in thousands | 38,897,000 | 35,640,000 | 33,740,000 | 30,550,000 | 27,624,000 |
| Cash ratio | 0.10 | 0.15 | 0.12 | 0.15 | 0.12 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,874,000K
+ $—K)
÷ $38,897,000K
= 0.10
The cash ratio for Cardinal Health Inc. has exhibited relatively modest fluctuations over the analyzed period. As of June 30, 2021, the cash ratio was 0.12, indicating that the company's cash and cash equivalents covered approximately 12% of its current liabilities. This ratio experienced a slight increase to 0.15 by June 30, 2022, suggesting a marginal improvement in the company's liquidity position in terms of immediate cash availability relative to its short-term obligations. However, the ratio reverted to 0.12 by June 30, 2023, aligning with the initial figure, reflecting a possible stabilization or slight decline in cash holdings relative to current liabilities.
Subsequently, the cash ratio again increased back to 0.15 on June 30, 2024, potentially indicating a strategic accumulation of cash or reduced current liabilities. By June 30, 2025, the ratio decreased to 0.10, reflecting a slight deterioration in liquidity in terms of readily available cash relative to current liabilities. Overall, the cash ratio has remained below 0.20 throughout the period, demonstrating a conservative liquidity stance where cash holdings constitute a small portion of current liabilities, possibly replaced or supplemented by other liquid assets such as receivables or marketable securities.
This pattern suggests that Cardinal Health Inc. maintains a relatively cautious approach to cash holdings, which may be typical within its industry or reflect strategic financial management. The ratios indicate no dramatic shifts, but rather small oscillations that point toward a consistent, albeit conservative, liquidity management strategy.
Peer comparison
Jun 30, 2025