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Cardinal Health Inventory Turnover

: 2.89 (As of Sep. 2021)
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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Cardinal Health's Cost of Goods Sold for the three months ended in Sep. 2021 was $42,326 Mil. Cardinal Health's Total Inventories for the quarter that ended in Sep. 2021 was $14,657 Mil. Cardinal Health's Inventory Turnover for the quarter that ended in Sep. 2021 was 2.89.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cardinal Health's Days Inventory for the three months ended in Sep. 2021 was 31.60.

Total Inventories can be measured by Days Sales of Inventory (DSI). Cardinal Health's days sales of inventory (DSI) for the three months ended in Sep. 2021 was 30.42.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Cardinal Health's Inventory-to-Revenue for the quarter that ended in Sep. 2021 was 0.33.


Cardinal Health Inventory Turnover Historical Data

The historical data trend for Cardinal Health's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cardinal Health Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Inventory Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.26 10.98 11.04 11.23 11.20

Cardinal Health Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.80 2.85 2.60 2.84 2.89

Cardinal Health Inventory Turnover Calculation

Cardinal Health's Inventory Turnover for the fiscal year that ended in Jun. 2021 is calculated as

Inventory Turnover (A: Jun. 2021 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (A: Jun. 2021 ) / ((Total Inventories (A: Jun. 2020 ) + Total Inventories (A: Jun. 2021 )) / count )
=155689 / ((13198 + 14594) / 2 )
=155689 / 13896
=11.20

Cardinal Health's Inventory Turnover for the quarter that ended in Sep. 2021 is calculated as

Inventory Turnover (Q: Sep. 2021 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (Q: Sep. 2021 ) / ((Total Inventories (Q: Jun. 2021 ) + Total Inventories (Q: Sep. 2021 )) / count )
=42326 / ((14594 + 14720) / 2 )
=42326 / 14657
=2.89

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cardinal Health  (NYSE:CAH) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Cardinal Health's Days Inventory for the three months ended in Sep. 2021 is calculated as:

Days Inventory =Total Inventories (Q: Sep. 2021 )/Cost of Goods Sold (Q: Sep. 2021 )*Days in Period
=14657/42326*365 / 4
=31.60

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

Cardinal Health's Days Sales of Inventory for the three months ended in Sep. 2021 is calculated as:

Days Sales of Inventory (DSI)=Total Inventories (Q: Sep. 2021 )/Revenue (Q: Sep. 2021 )*Days in Period
=14657/43968*365 / 4
=30.42

3. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Cardinal Health's Inventory to Revenue for the quarter that ended in Sep. 2021 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=14657 / 43968
=0.33

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


Cardinal Health Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Cardinal Health's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Cardinal Health Business Description

Cardinal Health logo
Industry
Healthcare » Medical Distribution NAICS : 424210 SIC : 5122
Address
7000 Cardinal Place, Dublin, OH, USA, 43017
Cardinal Health is the third- largest global logistics provider engaged in wholesale pharmaceutical and medical products. Similar to its closest two peers, the company has evolved over time and has become entrenched in the sourcing and distribution of brand-name and generic pharmaceuticals and related services to hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices. Through acquisitions, Cardinal Health has the ability to manufacture commodity products and certain medical devices.
Executives
Losh J Michael director H.B. FULLER COMPANY P.O. BOX 64683 ST. PAUL MN 55164-0683
Scarborough Dean A director 150 N. ORANGE GROVE BLVD PASADENA CA 91103
Snow Ola M officer: Chief Human Resources Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Edison Sheri H. director 1069 STATE ROUTE 46 EAST BATESVILLE IN 47006
English Patricia M officer: Chief Accounting Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Mason Stephen M officer: CEO, Medical Segment 7000 CARDINAL PLACE DUBLIN OH 43017
Mayer Jessica L officer: Chief Legal/Compliance Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Rice Brian S officer: Chief Information Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Holcomb Michele officer: EVP - Strategy & Corp. Dev. 7000 CARDINAL PLACE DUBLIN OH 43017
Hollar Jason M. officer: Chief Financial Officer 3333 BEVERLY ROAD HOFFMAN ESTATES IL 60179
Kaufmann Michael C director, officer: CEO 7000 CARDINAL PLACE DUBLIN OH 43017
Crawford Victor L. officer: CEO, Pharmaceutical Segment C/O THE PEPSI BOTTLING GROUP, INC. ONE PEPSI WAY SOMERS NY 10589
Laws Stuart G officer: SVP & Chief Accounting Officer CARDINAL HEALTH, INC. 7000 CARDINAL PLACE DUBLIN OH 43017
Evans David C director C/O THE SCOTTS MIRACLE-GRO COMPANY 14111 SCOTTSLAWN ROAD MARYSVILLE OH 43041
Darden Calvin director 11235 STROUP ROAD ROSWELL GA 30075

Cardinal Health Headlines

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