Cardinal Health Inc (CAH)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,561,000 | 852,000 | 330,000 | -933,000 | 611,000 |
| Total assets | US$ in thousands | 53,122,000 | 45,121,000 | 43,349,000 | 43,878,000 | 44,453,000 |
| ROA | 2.94% | 1.89% | 0.76% | -2.13% | 1.37% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $1,561,000K ÷ $53,122,000K
= 2.94%
The return on assets (ROA) for Cardinal Health Inc. over the specified period demonstrates notable fluctuations and an overall positive trend in recent years.
As of June 30, 2021, the ROA stood at 1.37%, indicating that the company was generating a modest profit relative to its total assets. This figure, however, declined significantly in the subsequent year, reaching -2.13% on June 30, 2022. The negative ROA reflects that in that fiscal year, the firm was not successful in translating its asset base into profitability, potentially due to operational challenges, higher expenses, or other adverse factors impacting net income.
In the following year, the ROA improved to 0.76% as of June 30, 2023. Although still below the level observed in 2021, this recovery indicates an improvement in operational efficiency and profitability relative to assets. The upward trend continued, with the ROA increasing to 1.89% by June 30, 2024, suggesting that the company's ability to leverage its assets profitably was strengthening.
Looking ahead to June 30, 2025, the ROA is projected to increase further to 2.94%. This progression signifies a sustained and robust improvement in asset utilization and profitability, implying that Cardinal Health Inc. is potentially implementing effective strategies to enhance operational efficiency and generate higher returns from its asset base.
Overall, the data depicts a period of volatility with a significant setback in 2022, followed by a steady recovery and positive trajectory. The upward trend in ROA in the recent years indicates an improving profitability profile, which is favorable from an investor and management perspective.
Peer comparison
Jun 30, 2025