Cardinal Health Inc (CAH)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.98 | 0.98 | 0.98 | 0.99 | 1.00 | 1.03 | 1.04 | 1.04 | 1.08 | 1.08 | 1.15 | 1.12 | 1.12 | 1.20 | 1.17 | 1.13 | 1.10 | 1.05 | 1.03 | 1.05 |
| Quick ratio | 0.49 | 0.42 | 0.43 | 0.43 | 0.45 | 0.46 | 0.45 | 0.46 | 0.50 | 0.44 | 0.45 | 0.44 | 0.45 | 0.48 | 0.48 | 0.47 | 0.47 | 0.46 | 0.40 | 0.42 |
| Cash ratio | 0.15 | 0.10 | 0.12 | 0.11 | 0.12 | 0.12 | 0.11 | 0.11 | 0.15 | 0.08 | 0.11 | 0.09 | 0.12 | 0.14 | 0.15 | 0.11 | 0.12 | 0.09 | 0.07 | 0.05 |
Cardinal Health Inc's liquidity ratios have shown some fluctuations over the past few quarters. The current ratio has generally been around 1.00, indicating that the company has approximately $1 in current assets for every $1 in current liabilities. This suggests a balanced liquidity position, although the ratio dipped slightly below 1 in some quarters, which may warrant further monitoring.
The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. Cardinal Health's quick ratio has been consistently below 1, ranging from 0.42 to 0.50. This indicates that the company may face challenges in meeting its short-term obligations without relying on inventory sales.
The cash ratio, reflecting the most stringent measure of liquidity, has varied between 0.08 to 0.15. This ratio signifies the proportion of current liabilities covered by cash and cash equivalents alone. While Cardinal Health's cash ratio has shown some improvement, it suggests that the company may have limited ability to cover its short-term obligations solely with cash on hand.
Overall, Cardinal Health Inc's liquidity ratios indicate a generally stable liquidity position with some fluctuations observed in the quick and cash ratios. Continued monitoring of these ratios will be important to assess the company's ability to meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -8.49 | -6.21 | -7.70 | -6.58 | -5.68 | -4.48 | -3.50 | -3.67 | -2.74 | 1.18 | -1.71 | 0.55 | -0.90 | 0.08 | -1.11 | 0.01 | -0.71 | -1.41 | 0.62 | 1.41 |
The cash conversion cycle of Cardinal Health Inc has shown fluctuations over the past few quarters. The cycle, which represents the time it takes for a company to convert its investments in inventory into cash flows from sales, has generally been negative, indicating efficient management of working capital.
In the most recent quarter, the cash conversion cycle was -8.49 days, reflecting a decrease from the previously reported -6.21 days. This suggests that the company has been able to optimize its working capital and convert its inventory into cash even more rapidly.
Looking back further, the trend of the cash conversion cycle has fluctuated between negative and positive values, indicating some variability in the efficiency of Cardinal Health's working capital management. However, the overall pattern shows a general improvement in the management of the cash conversion cycle over the quarters, with the company consistently working towards a more efficient cycle.
It is important for Cardinal Health Inc to continue monitoring and optimizing its cash conversion cycle to ensure that working capital is managed effectively and efficiently, allowing the company to maximize cash flows and operate smoothly.