Cardinal Health Inc (CAH)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | 24.82 | 22.79 |
Based on the provided data, Cardinal Health Inc has consistently maintained a debt-free position with a debt-to-assets, debt-to-capital, and debt-to-equity ratio of 0.00 for the past five years. This indicates that the company has not relied on debt to finance its operations or investments during this period.
Furthermore, the financial leverage ratio, which measures the extent to which a company uses debt to finance its operations, was 24.82 in 2021 and 22.79 in 2020. The decrease in the financial leverage ratio from 2021 to 2020 indicates a reduction in the company's reliance on debt to support its activities.
Overall, based on the solvency ratios provided, Cardinal Health Inc appears to have maintained a conservative financial strategy with minimal debt exposure, which may reflect positively on its financial stability and ability to weather economic uncertainties.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 24.53 | 8.69 | -4.17 | 2.79 | -14.86 |
The interest coverage ratio for Cardinal Health Inc has shown significant fluctuations over the past five years. In June 2024, the interest coverage ratio was 24.53, indicating that the company's ability to meet its interest obligations from its operating earnings improved significantly compared to the previous year. This suggests that Cardinal Health Inc had more than enough operating income to cover its interest expenses.
In contrast, in June 2020, the interest coverage ratio was negative at -14.86, indicating that the company's operating earnings were insufficient to cover its interest expenses. This could raise concerns about the company's financial health and solvency during that period.
Overall, a higher interest coverage ratio is generally seen as favorable as it indicates a company's ability to easily meet its interest obligations. However, it is essential to consider the trend over multiple periods to assess the consistency and sustainability of Cardinal Health Inc's ability to cover its interest expenses.