Cardinal Health Inc (CAH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -3,213,000 | -2,958,000 | -709,000 | 1,791,000 | 1,789,000 |
| ROE | — | — | — | 34.12% | -206.60% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $852,000K ÷ $-3,213,000K
= —
Given the data provided for Cardinal Health Inc's return on equity (ROE) over the last five years, it is observed that the company's ROE was not available for the years ended June 30, 2020, 2022, 2023, and 2024. However, the ROE figure for the year ended June 30, 2021, was 34.12%, indicating a positive return on equity.
The significant increase in ROE from a negative figure of -206.60% in 2020 to a positive 34.12% in 2021 suggests an improvement in the company's profitability and efficiency in generating returns for its shareholders. This improvement could be attributed to various factors such as cost management, revenue growth, or better capital allocation strategies.
It is essential to note that the absence of ROE data for the other years makes it challenging to assess the trend consistently. Monitoring future ROE figures will be crucial to identify the company's ability to sustain and further improve its return on equity over time.
Peer comparison
Jun 30, 2024