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Cardinal Health ROE %

: 25.91% (As of Jun. 2021)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Cardinal Health's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2021 was $464 Mil. Cardinal Health's average Total Stockholders Equity over the quarter that ended in Jun. 2021 was $1,791 Mil. Therefore, Cardinal Health's annualized ROE % for the quarter that ended in Jun. 2021 was 25.91%.

The historical rank and industry rank for Cardinal Health's ROE % or its related term are showing as below:

NYSE:CAH' s ROE % Range Over the Past 10 Years
Min: -91.07   Med: 19.02   Max: 34.86
Current: 34.86

-91.07
34.86

During the past 13 years, Cardinal Health's highest ROE % was 34.86%. The lowest was -91.07%. And the median was 19.02%.

NYSE:CAH's ROE % is ranked higher than
72% of the 18 Companies
in the Medical Distribution industry.

( Industry Median: 1.09 vs. NYSE:CAH: 34.86 )

Cardinal Health ROE % Historical Data

The historical data trend for Cardinal Health's ROE % 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
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.28 3.98 22.01 -91.07 34.13

Cardinal Health Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
ROE % 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 175.40 -63.03 148.31 25.31 25.91

Competitive Comparison

For the Medical Distribution subindustry, Cardinal Health's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cardinal Health ROE % Distribution

For the Medical Distribution industry and Healthcare sector, Cardinal Health's ROE % distribution charts can be found below:

* The bar in red indicates where Cardinal Health's ROE % falls into.



Cardinal Health ROE % Calculation

Cardinal Health's annualized ROE % for the fiscal year that ended in Jun. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Jun. 2021 )/( (Total Stockholders Equity (A: Jun. 2020 )+Total Stockholders Equity (A: Jun. 2021 ))/ count )
=611/( (1789+1791)/ 2 )
=611/1790
=34.13 %

Cardinal Health's annualized ROE % for the quarter that ended in Jun. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2021 )/( (Total Stockholders Equity (Q: Mar. 2021 )+Total Stockholders Equity (Q: Jun. 2021 ))/ count )
=464/( (1790+1791)/ 2 )
=464/1790.5
=25.91 %

* 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.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Cardinal Health  (NYSE:CAH) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2021 )
=Net Income/Total Stockholders Equity
=464/1790.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(464 / 170344)*(170344 / 44163.5)*(44163.5 / 1790.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.27 %*3.8571*24.6655
=ROA %*Equity Multiplier
=1.04 %*24.6655
=25.91 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2021 )
=Net Income/Total Stockholders Equity
=464/1790.5
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (464 / 476) * (476 / 960) * (960 / 170344) * (170344 / 44163.5) * (44163.5 / 1790.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9748 * 0.4958 * 0.56 % * 3.8571 * 24.6655
=25.91 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Cardinal Health ROE % Related Terms

Thank you for viewing the detailed overview of Cardinal Health's ROE % 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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