Cardinal Health Inc (CAH)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 852,000 | 330,000 | -933,000 | 611,000 | -3,696,000 |
| Total assets | US$ in thousands | 45,121,000 | 43,349,000 | 43,878,000 | 44,453,000 | 40,766,000 |
| ROA | 1.89% | 0.76% | -2.13% | 1.37% | -9.07% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $852,000K ÷ $45,121,000K
= 1.89%
Cardinal Health Inc's return on assets (ROA) has fluctuated over the past five years. The ROA was negative in 2020 at -9.07%, indicating that the company's assets did not generate positive returns during that year. However, there was a significant improvement in ROA in the subsequent years, with the ratio increasing to 1.37% in 2021, 2.13% in 2022, 0.76% in 2023, and further to 1.89% in 2024.
This positive trend in ROA suggests that Cardinal Health Inc's assets have been more effectively utilized to generate profits in recent years. The company managed to turn around its asset performance from a significant loss in 2020 to positive returns in the following years, indicating improved operational efficiency and profitability. It is important to continue monitoring Cardinal Health Inc's ROA to assess its ongoing ability to generate profits relative to its asset base.
Peer comparison
Jun 30, 2024