Cardinal Health Inc (CAH)

The provided data indicates that Cardinal Health Inc. exhibits a consistent and notably low degree of indebtedness across the analyzed period. Specifically, the Debt-to-assets ratio remains at zero for all years from June 30, 2021, through June 30, 2025, suggesting that the company's total assets are entirely financed through equity and other non-debt sources, with no visible reliance on liabilities.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio are either zero or not available (represented as em dashes), reinforcing the absence of leverage through debt financing. The zero values imply that the company does not utilize debt as a means of capital structure, leading to a highly conservative financial position in terms of leverage.

The Financial leverage ratio, recorded at 24.82 on June 30, 2021, and unspecified in subsequent years, indicates that prior to 2022, the company maintained a substantial leverage level. Given that other debt ratios are zero, this discrepancy could suggest either a reporting inconsistency, a specific methodological calculation, or the presence of other forms of financial structure not captured by typical debt ratios.

Overall, the ratios depict a company with minimal or no reliance on debt funding, maintaining a highly solvent and financially conservative profile, with a low risk of insolvency caused by debt obligations. The stability of these ratios over the years suggests a consistent approach to capital structure, characterized by low leverage risk.

---

Coverage ratios

The interest coverage ratio for Cardinal Health Inc. demonstrates a notable improvement over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 2.77, indicating the company earned approximately 2.77 times its interest expenses, which suggests a relatively modest ability to cover interest obligations from operating earnings at that time. By June 30, 2022, the ratio experienced a significant increase to 9.58, reflecting a substantial enhancement in the company's capacity to service its interest obligations, likely due to improved earnings or reduced interest expenses.

This elevated level persisted through June 30, 2023, with a ratio of 8.71, indicating sustained strength in interest coverage, although slightly lower than the previous year’s figure, perhaps reflecting minor fluctuations in earnings or interest expenses. The trend accelerates markedly in the subsequent year, with the ratio rising to 18.93 as of June 30, 2024. This substantial increase suggests a very strong ability to cover interest expenses, signifying either a significant increase in operating earnings, a reduction in interest obligations, or a combination of both.

By June 30, 2025, the ratio remains high at 9.32, indicating continued robust coverage, though somewhat lower than the peak observed in 2024. Overall, the progression of the interest coverage ratio illustrates a trajectory of substantial improvement, moving from a relatively cautious level in 2021 towards a markedly stronger position in subsequent years, reflecting enhanced operational performance or financial management that effectively supports interest obligations.