Cardinal Health Inc (CAH)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,275,000 | 1,243,000 | 752,000 | 1,673,000 | 472,000 |
| Total assets | US$ in thousands | 53,122,000 | 45,121,000 | 43,349,000 | 43,878,000 | 44,453,000 |
| Operating ROA | 4.28% | 2.75% | 1.73% | 3.81% | 1.06% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $2,275,000K ÷ $53,122,000K
= 4.28%
The operating return on assets (ROA) for Cardinal Health Inc. demonstrates notable fluctuations over the analyzed period from June 30, 2021, through June 30, 2025. In fiscal year 2021, the operating ROA was approximately 1.06%, indicating a relatively modest efficiency in generating operating income relative to the company's total assets. This figure experienced a significant increase by fiscal year 2022, reaching 3.81%, which suggests an improvement in operational efficiency and asset utilization during that period.
However, in the subsequent year (2023), the operating ROA declined to 1.73%, pointing to a deterioration in operational performance or efficiency, or potentially increased asset base without a proportional rise in operating income. This downward trend was followed by a recovery in fiscal year 2024, with the operating ROA rising to 2.75%, reflecting a positive adjustment in operational performance or asset management.
The most recent data from fiscal year 2025 shows a further increase to 4.28%, marking a substantial improvement relative to the previous years. This upward trajectory indicates that Cardinal Health Inc. has been able to enhance its operational efficiency significantly, generating higher operating income per dollar of assets employed.
Overall, the trend in the operating ROA suggests periods of volatility with a general trajectory toward improvement in the company's operational effectiveness over the observed period. The increasing trend in 2024 and 2025 may signal effective management strategies, favorable market conditions, or improvements in operational processes that are contributing to more efficient utilization of assets to generate operating income.
Peer comparison
Jun 30, 2025