Cardinal Health Inc (CAH)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 3.27% | 3.35% | 3.61% | 4.17% | 4.49% |
| Operating profit margin | 0.55% | 0.37% | -0.33% | 0.29% | -2.68% |
| Pretax margin | 0.53% | 0.31% | -0.42% | 0.20% | -2.47% |
| Net profit margin | 0.38% | 0.16% | -0.51% | 0.38% | -2.42% |
Cardinal Health Inc's profitability ratios show fluctuating trends over the past five years. The gross profit margin has declined from 4.49% in 2020 to 3.27% in 2024, indicating a decreasing trend in the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin has also been inconsistent, with negative margins in 2022 and 2020, suggesting operational challenges during those periods. However, there was an improvement in 2024 with a margin of 0.55%.
Similarly, the pretax margin and net profit margin have shown volatility, with the company experiencing negative margins in 2022 and 2020. The profitability ratios improved in 2024 compared to the previous years, indicating potential recovery in the company's overall profitability.
Overall, Cardinal Health Inc's profitability ratios reflect a mixed performance over the past five years, with some improvements in 2024 compared to the challenging years of 2022 and 2020. Continued monitoring and strategic management of costs and revenues will be crucial for sustaining and enhancing profitability in the future.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.75% | 1.73% | -1.36% | 1.06% | -10.05% |
| Return on assets (ROA) | 1.89% | 0.76% | -2.13% | 1.37% | -9.07% |
| Return on total capital | — | — | — | 28.03% | -197.71% |
| Return on equity (ROE) | — | — | — | 34.12% | -206.60% |
1. Operating return on assets (Operating ROA):
- The Operating ROA has shown a positive trend over the last five years, with a noticeable improvement from -10.05% in 2020 to 2.75% in 2024. This indicates that Cardinal Health has been able to generate more operating income relative to its total assets.
2. Return on assets (ROA):
- The ROA has also displayed a positive trend, increasing from -9.07% in 2020 to 1.89% in 2024. This improvement suggests that Cardinal Health has been more efficient in utilizing its assets to generate profits for its stakeholders.
3. Return on total capital:
- Data for Return on total capital is missing for the years under review except for 2021 and 2020. In 2021, the company had an impressive return of 28.03%, indicating that Cardinal Health was able to generate substantial returns on its total capital investments.
4. Return on equity (ROE):
- ROE has also shown a positive trend over the past five years, with significant improvements from -206.60% in 2020 to 34.12% in 2024. This indicates that Cardinal Health has been more efficient in generating profits for its shareholders relative to their equity investments in the company.
Overall, the profitability ratios of Cardinal Health Inc have shown a positive trajectory, reflecting the company's efforts in improving operational efficiency and generating higher returns for its stakeholders over the years.