Cardinal Health Inc (CAH)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 3.67% | 3.27% | 3.36% | 3.61% | 4.17% |
| Operating profit margin | 1.02% | 0.55% | 0.37% | 0.92% | 0.29% |
| Pretax margin | 0.94% | 0.53% | 0.32% | -0.42% | 0.20% |
| Net profit margin | 0.70% | 0.38% | 0.16% | -0.51% | 0.38% |
The analysis of Cardinal Health Inc.'s profitability ratios over the period from June 30, 2021, to June 30, 2025, reveals a trend characterized by initially low and fluctuating margins, followed by a gradual improvement in recent years.
Gross Profit Margin: The gross profit margin exhibited a decreasing trend from 4.17% in 2021 to a low of 3.36% in 2023. Although it slighted increased to 3.67% in 2025, the overall pattern indicates a contraction in gross profitability, potentially reflecting increased cost pressures or competitive factors affecting the company's core operations.
Operating Profit Margin: The operating profit margin showed notable fluctuation, moving from 0.29% in 2021 to a peak of 0.92% in 2022, before declining again to 0.37% in 2023. Subsequently, there has been a consistent upward trend, reaching 1.02% in 2025. This indicates an improving efficiency in managing operating expenses relative to revenue over the latter period.
Pretax Margin: The pretax margin mirrored some of the fluctuations observed in operating profit. It was slightly positive at 0.20% in 2021 but dipped into negative territory at -0.42% in 2022. Following this, there has been a steady recovery, culminating in a pretax margin of 0.94% in 2025, signifying improved profitability before tax considerations.
Net Profit Margin: The net profit margin reflects the company's bottom-line profitability after all expenses. It was relatively modest at 0.38% in 2021 and experienced a decline to -0.51% in 2022, indicating a period of poor profitability or potentially increased expenses. Since then, a gradual recovery is evident, with the net profit margin reaching 0.70% in 2025, suggesting an overall improvement in net income relative to revenues.
In summary, Cardinal Health Inc. experienced a period of contraction in gross margins during the early years, accompanied by volatility in operating, pretax, and net margins. Nonetheless, recent years have shown consistent improvement, particularly from 2023 onwards, indicating progress toward enhanced profitability and more effective cost management.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.28% | 2.75% | 1.73% | 3.81% | 1.06% |
| Return on assets (ROA) | 2.94% | 1.89% | 0.76% | -2.13% | 1.37% |
| Return on total capital | — | — | — | — | 28.20% |
| Return on equity (ROE) | — | — | — | — | 34.12% |
Based on the provided data, the profitability ratios of Cardinal Health Inc. over the period from June 30, 2021, to June 30, 2025, reveal several noteworthy trends and insights.
Operating Return on Assets (Operating ROA):
The operating ROA fluctuated during the analyzed periods, starting at 1.06% as of June 30, 2021. It increased markedly to 3.81% by June 30, 2022, indicating improved efficiency in generating operating income from assets. However, this ratio declined to 1.73% on June 30, 2023, before recovering to 2.75% by June 30, 2024, and reaching 4.28% in June 2025. The overall trend suggests a significant improvement in operational efficiency and asset utilization in recent years.
Return on Assets (ROA):
The ROA metric demonstrates more variability. It was at 1.37% on June 30, 2021, but declined sharply to -2.13% by June 30, 2022, indicating a period of diminished profitability and possibly losses relative to assets. Subsequently, the ROA recovered to 0.76% by June 30, 2023, and continued upward to 1.89% in June 2024, culminating at 2.94% in June 2025. These figures illustrate a recovery trajectory in overall profitability, with recent periods approaching pre-2021 performance levels.
Return on Total Capital:
Data for this ratio is only available for June 30, 2021, at 28.20%. No subsequent data points are provided, preventing a comprehensive trend analysis. Nevertheless, the high value indicates that, at that time, the company was effectively generating returns on its total capital base.
Return on Equity (ROE):
ROE, which measures profitability relative to shareholders’ equity, was 34.12% as of June 30, 2021. Similar to the return on total capital, data beyond that date is unavailable, precluding analysis of recent trends. The high initial ROE indicates efficient equity utilization at that time.
Summary:
Overall, the analyzed profitability ratios highlight a period of challenges around 2022, with both ROA and ROE experiencing declines, which may reflect adverse market conditions or strategic shifts. However, recent figures suggest a recovery, especially in operating ROA and ROA, indicating improvements in operational efficiency and asset management. The absence of subsequent data on total capital and equity ratios limits the capacity to assess longer-term shareholder value creation or capital efficiency beyond 2021.