Cardinal Health Inc (CAH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 43.77 | 30.86 | 24.82 | 24.51 | 22.69 | 29.34 | 22.79 | 34.20 | 41.08 | 43.53 |
The solvency ratios of Cardinal Health Inc, specifically the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have consistently remained at 0.00 for the periods in question. This indicates that the company has not been utilizing debt significantly to finance its operations and investments, maintaining a conservative approach towards leverage.
However, the financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, has shown fluctuations over the periods analyzed. The ratio ranged from 22.69 to 43.77 during the most recent quarters, reflecting changes in the company's capital structure and indicating varying levels of reliance on debt.
Overall, Cardinal Health Inc's solvency ratios suggest a stable financial position with minimal debt obligations relative to its assets and equity. The company's conservative approach to leverage may indicate a focus on financial stability and risk management.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates a stronger ability to cover interest costs. Looking at the data for Cardinal Health Inc, we observe significant fluctuations in the interest coverage ratio over the last few quarters.
In the most recent quarter, as of June 30, 2024, the interest coverage ratio is a robust 32.92, indicating that the company's earnings are more than sufficient to cover its interest expenses. This suggests a strong financial position and ability to meet debt obligations comfortably.
However, the trend in previous quarters shows a mix of values, ranging from positive figures to negative territory. The negative ratios, such as in Dec 31, 2022, and Sep 30, 2022, indicate that the company's earnings were insufficient to cover its interest expenses during those periods.
The improvement in the interest coverage ratio in the latest period compared to previous quarters is a positive sign for Cardinal Health Inc. It suggests that the company's profitability has increased, enabling it to better service its debt. However, management should continue to monitor this ratio closely to ensure it remains at healthy levels and takes actions to address any potential weaknesses in the future.