Cardinal Health Inc (CAH)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,251,000 | 995,000 | 1,192,000 | 583,000 | 730,000 | 599,000 | -71,000 | -895,000 | -621,000 | -464,000 | 120,000 | 1,528,000 | 502,000 | 727,000 | 526,000 | 278,000 | -4,383,000 | -4,467,000 | -4,305,000 | -4,047,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -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 | 1,789,000 | 1,203,000 | 999,000 | 900,000 |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | 12.02% | 109.69% | 28.03% | 40.61% | 26.69% | 19.55% | -245.00% | -371.32% | -430.93% | -449.67% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,251,000K ÷ ($—K + $-3,213,000K)
= —
Return on total capital measures how effectively a company generates profits from all of its capital. Cardinal Health Inc's return on total capital has shown significant fluctuations over the past few quarters. In the most recent quarter, the return on total capital was not available. However, in the previous quarters, the company's performance was volatile with high returns in some periods and negative returns in others.
Specifically, in the December 2021 quarter, the return on total capital was at 12.02%, showing a moderate level of profitability. This figure surged to 109.69% in the March 2022 quarter, indicating a substantial improvement. However, in the subsequent quarters, the return on total capital decreased to 26.69% in June 2022 and further to -245.00% in September 2022, reflecting a significant decline.
The negative returns continued in the following quarters, with September 2020 showing -430.93%, September 2019 showing -449.67%, and the worst performance seen in June 2020 with a return on total capital of -371.32%.
Overall, Cardinal Health Inc's return on total capital has been inconsistent, with both positive and negative fluctuations, suggesting varying levels of efficiency in utilizing its capital resources to generate profits.
Peer comparison
Jun 30, 2024