Cardinal Health Inc (CAH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,316,000 | 2,262,000 | 1,893,000 | 1,845,000 | 1,260,000 | 1,004,000 | 1,206,000 | 596,000 | 743,000 | 606,000 | -65,000 | -889,000 | -615,000 | -463,000 | 121,000 | 1,530,000 | 503,000 | 686,000 | 739,000 | 608,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -2,781,000 | -2,948,000 | -2,991,000 | -3,277,000 | -3,213,000 | -3,265,000 | -3,449,000 | -3,491,000 | -2,958,000 | -2,220,000 | -2,213,000 | -1,781,000 | -709,000 | -697,000 | 998,000 | 1,393,000 | 1,791,000 | 1,790,000 | 1,971,000 | 1,422,000 |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 12.12% | 109.83% | 28.08% | 38.32% | 37.49% | 42.76% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,316,000K ÷ ($—K + $-2,781,000K)
= —
The analysis of Cardinal Health Inc.'s Return on Total Capital (ROTC) over the observed periods reveals significant fluctuations. During the fiscal quarter ending September 30, 2020, the ROTC was notably high at 42.76%, indicating robust profitability relative to the company's total capital base. This level persisted into December 31, 2020, with a slight decline to 37.49%, and experienced a modest increase to 38.32% by March 31, 2021, suggesting stable operational efficiency and effective capital utilization during this period.
However, a sharp decline was observed in the quarter ending June 30, 2021, where ARMOTC dropped significantly to 28.08%, which may signal diminished returns possibly due to increased costs or changes in revenue streams. Interestingly, a dramatic spike occurred by September 30, 2021, where ROTC surged to 109.83%. Such an extraordinary increase could be attributable to extraordinary gains, asset disposals, or accounting adjustments that temporarily inflated return figures; nonetheless, this warrants further investigation for underlying causes.
Following this peak, the ROTC declined substantially to 12.12% at the end of December 2021, returning closer to pre-2021 levels and indicating a normalization or reduction in profitability relative to total capital. Data beyond December 2021 is unavailable, with all subsequent periods showing no reported values. Consequently, it is not possible to assess trends or performance beyond this date.
Overall, the available data indicates that Cardinal Health Inc. experienced periods of strong ROI on total capital during 2020 and early 2021, with a notable anomaly in late 2021. The absence of data from 2022 onward limits comprehensive trend analysis. The fluctuations underscore the importance of examining underlying operational factors, capital structure changes, and external influences during the respective periods.
Peer comparison
Jun 30, 2025