Cardinal Health Inc (CAH)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,133,000 | 4,076,000 | 4,717,000 | 3,407,000 | 2,771,000 |
| Short-term investments | US$ in thousands | 200,000 | — | — | — | — |
| Receivables | US$ in thousands | 12,084,000 | 11,108,000 | 10,561,000 | 9,103,000 | 8,264,000 |
| Total current liabilities | US$ in thousands | 35,640,000 | 33,740,000 | 30,550,000 | 27,624,000 | 23,615,000 |
| Quick ratio | 0.49 | 0.45 | 0.50 | 0.45 | 0.47 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,133,000K
+ $200,000K
+ $12,084,000K)
÷ $35,640,000K
= 0.49
The quick ratio for Cardinal Health Inc has been fairly consistent over the past five years, ranging from 0.45 to 0.50. This ratio indicates the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
A quick ratio of less than 1 suggests that the company may have difficulty meeting its short-term obligations with its quick assets alone. Cardinal Health Inc's quick ratio has been below 1 in all the years provided, indicating potential liquidity challenges.
Overall, while the company's quick ratio has been stable, it is important to closely monitor it to ensure that Cardinal Health Inc can effectively meet its short-term financial obligations.
Peer comparison
Jun 30, 2024