Cardinal Health Inc (CAH)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 3.67% | 3.50% | 3.39% | 3.31% | 3.21% | 3.31% | 3.33% | 3.34% | 3.36% | 3.36% | 3.40% | 3.49% | 3.61% | 3.63% | 3.82% | 4.01% | 4.17% | 4.40% | 4.45% | 4.46% |
| Operating profit margin | 1.15% | 1.01% | 0.85% | 0.82% | 0.56% | 0.45% | 0.56% | 0.52% | 0.71% | 0.83% | 0.80% | 0.10% | 0.14% | 0.05% | 0.06% | 0.90% | 0.29% | 0.37% | 0.43% | 0.35% |
| Pretax margin | 0.94% | 0.95% | 0.80% | 0.80% | 0.54% | 0.43% | 0.53% | 0.24% | 0.31% | 0.25% | -0.10% | -0.55% | -0.42% | -0.35% | -0.03% | 0.81% | 0.20% | 0.65% | 0.68% | 0.59% |
| Net profit margin | 0.70% | 0.70% | 0.59% | 0.56% | 0.38% | 0.25% | 0.30% | 0.07% | 0.13% | 0.23% | -0.66% | -0.58% | -0.51% | -0.54% | 0.32% | 0.68% | 0.38% | 0.74% | 0.88% | 0.63% |
Based on the provided data, the profitability ratios of Cardinal Health Inc. demonstrate notable trends from September 2020 through June 2025, with some fluctuations over the period.
The gross profit margin has exhibited a consistent downward trend, decreasing from approximately 4.46% in September 2020 to around 3.21% in June 2024 before experiencing a slight recovery to 3.67% by June 2025. This pattern indicates a gradual decline in the company's ability to cover its cost of goods sold with revenue, suggesting pressures on gross profitability, potentially due to increased costs or pricing strategies.
The operating profit margin shows more fluctuation; initially starting at a modest 0.35% in September 2020, it experienced occasional periods of slight improvement, with notable peaks reaching 0.90% in September 2021 and a recovery to about 0.83% in March 2023. However, several periods, especially during 2022, reflect very low or negative operating margins, implying challenges in controlling operating expenses relative to revenue. Recent data from late 2023 and mid-2024 indicates margins around 0.45% to 0.56%, with an upward trend suggesting some operational improvement.
Pretax margin remained positive for most of the period, though it experienced negative values during 2022, specifically in March and June, indicating periods where pre-tax profitability was negative. The pretax margin has shown recovery in 2023 and 2024, reaching up to approximately 0.80% in December 2024, and continuing to improve toward 0.94% by June 2025. These movements highlight periods of operational stress, followed by gradual recoveries in pre-tax profitability.
Net profit margin mirrors the pretax margin pattern but generally remains slightly higher or lower depending on tax and other net income effects. It was notably higher in December 2020 (0.88%) and declined sharply in March 2022 to negative territory, but has since shown gradual recovery, reaching approximately 0.70% in June 2025.
Overall, Cardinal Health Inc.'s profitability ratios suggest a company that faced periods of margin compression, especially during 2022, but has demonstrated signs of improvement in recent periods. The trends indicate ongoing challenges with profit sustainability at the gross and operating levels, yet a positive trajectory in net margins and pretax profitability in subsequent periods, reflecting attempts to improve operational efficiency and cost management.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.83% | 4.52% | 4.03% | 4.30% | 2.81% | 2.17% | 2.58% | 2.52% | 3.37% | 3.82% | 3.48% | 0.44% | 0.59% | 0.21% | 0.23% | 3.51% | 1.06% | 1.32% | 1.50% | 1.30% |
| Return on assets (ROA) | 2.94% | 3.12% | 2.79% | 2.93% | 1.89% | 1.20% | 1.37% | 0.36% | 0.60% | 1.07% | -2.86% | -2.52% | -2.12% | -2.27% | 1.27% | 2.64% | 1.37% | 2.62% | 3.09% | 2.33% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 12.12% | 109.83% | 28.08% | 38.32% | 37.49% | 42.76% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 55.61% | 81.48% | 34.12% | 64.30% | 70.12% | 68.42% |
The profitability ratios of Cardinal Health Inc. over the period from September 2020 to June 2025 reveal varied performance and notable trends. The Operating Return on Assets (Operating ROA) experienced fluctuations, starting at approximately 1.30% in September 2020. It showed a significant increase during September 2021, reaching around 3.51%, which indicated an improvement in operational efficiency related to core business activities. However, this ratio declined thereafter, reaching recent levels of approximately 2.17% in March 2024 before rising again slightly to about 4.83% by June 2025, suggesting periods of operational volatility but an overall upward trend in recent years.
The Return on Assets (ROA), which measures overall profitability relative to total assets, initially increased from about 2.33% in September 2020 to a peak of 3.09% in December 2020. It then showed a downward trend, turning negative starting March 2022, with values around -2.27% and reaching as low as approximately -2.86% in December 2022. From this nadir, ROA gradually recovered, returning to positive territory by March 2023, and continuing a slow upward trajectory to approximately 2.94% by June 2025. This indicates periods of losses potentially linked to broader economic or sector-specific challenges, followed by recovery phases.
The Return on Total Capital displayed particularly volatile behavior, notably surging to an exceptionally high 109.83% in September 2021—an outlier perhaps due to specific capital restructuring or extraordinary items. Prior to this spike, the ratio generally ranged from 28% to 42%, indicating healthy returns on capital employed. Post-pandemic, and after the peak, data for this ratio become unavailable, limiting more recent analysis.
The Return on Equity (ROE), which reflects the return generated on shareholders' equity, was high at approximately 68.42% in September 2020, peaking at 81.48% in September 2021. It experienced a significant decline to about 34.12% in June 2021, suggesting increased leverage or changes in net income relative to equity. Post-2021, data are not available for ROE, precluding further analysis of recent trends.
Overall, the profitability ratios for Cardinal Health indicate periods of strong operational and financial performance interspersed with downturns, particularly noticeable in the ROA and ROE metrics. The recent resurgence in Operating ROA and ROA suggests a recovery. However, the volatility and fluctuations highlight the impact of external and internal factors on the company's profitability over the analyzed period.