Cardinal Health Inc (CAH)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 38,000 | 57,000 | 55,000 | 77,000 | 91,000 | 110,000 | 122,000 | 134,000 | 149,000 | 159,000 | 166,000 | 175,000 | 180,000 | 185,000 | 200,000 | 217,000 | 238,000 | 256,000 | 271,000 | 284,000 |
| Interest coverage | 32.92 | 17.46 | 21.67 | 7.57 | 8.02 | 5.45 | -0.58 | -6.68 | -4.17 | -2.92 | 0.72 | 8.73 | 2.79 | 3.93 | 2.63 | 1.28 | -18.42 | -17.45 | -15.89 | -14.25 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,251,000K ÷ $38,000K
= 32.92
The interest coverage ratio for Cardinal Health Inc has shown fluctuations over the periods analyzed. It indicates the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).
The interest coverage ratio improved significantly from the negative values in 2022 to positive values in 2023 and 2024. This positive trend is a positive sign that the company's earnings are now sufficiently covering its interest expenses.
The highest interest coverage ratio was observed at 32.92 in June 2024, indicating a strong ability to cover interest payments through its earnings. However, it decreased to 17.46 in March 2024, suggesting a slight decrease in earnings relative to interest expenses.
Although the company's interest coverage ratio has improved, it is essential to monitor the trend over time to ensure that it remains stable and sufficient to cover interest payments. Additionally, comparing the ratio to industry averages can provide further insights into Cardinal Health Inc's financial health and performance.
Peer comparison
Jun 30, 2024