Cardinal HealthLTS:0HTG +0.19%83 Interest Coverage is 8.34 as of Mar. 2026, which is 24% below its 10-year median of 10.98. GuruFocus rates LTS:0HTG with a GF Score™ of 83/100 and a GF Value™ of $140.72 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 89 Medical Distribution companies, Cardinal Health ranks better than 59.55% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Cardinal Health's
Operating Income
for the
three
months ended in Mar. 2026 was $842 Mil. Cardinal Health's Interest Expense for the
three
months ended in Mar. 2026 was $-101 Mil.
Cardinal Health's interest coverage for the quarter that ended in Mar. 2026 was 8.34.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cardinal Health's Interest Coverage or its related term are showing as below:
LTS:0HTG'
s Interest Coverage Range Over the Past 10 Years
Min: 5.71 Med: 10.98 Max: 41.76
Current: 8.58
LTS:0HTG's Interest Coverage is ranked better than 59.55% of 89
companies
in the Medical Distribution industry
Industry Median: 6.23
vs LTS:0HTG: 8.58
Cardinal Health (LTS:0HTG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Cardinal Health Interest Coverage Related Terms
Cardinal Health Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cardinal Health's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LTS:0HTG vs COR, MCK, HSIC: Interest Coverage Comparison
For the Medical Distribution subindustry, Cardinal Health's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cardinal Health's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (LTS:0HTG) has a Interest Coverage of 8.34 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cardinal Health and its competitors. This is 24% below median its historical median of 10.98. Over the past decade, Cardinal Health's Interest Coverage has ranged from 5.71 to 41.76. According to the industry distribution chart, Cardinal Health ranks #36 out of 89 companies in the Medical Distribution industry, placing it in the top 40.4%.
Is Cardinal Health's Interest Coverage too high?
Cardinal Health's current Interest Coverage of 8.34 is 24% below median its 10-year median of 10.98. Over the past 10 years, this metric has ranged from a low of 5.71 to a high of 41.76. The Medical Distribution industry median Interest Coverage is 6.23. Cardinal Health's value of 8.34 is 33.9% above this industry median. Based on the distribution chart, Cardinal Health ranks #36 out of 89 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, Cardinal Health has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cardinal Health's Interest Coverage compare to COR and MCK?
According to the Medical Distribution industry distribution chart, Cardinal Health ranks #36 out of 89 companies for Interest Coverage. This puts Cardinal Health in the upper half of its industry. The industry median Interest Coverage is 6.23. Cardinal Health's value of 8.34 is 33.9% above this benchmark. Historically, Cardinal Health's own Interest Coverage has ranged from 5.71 to 41.76 over the past decade. While the company's 10-year median is 10.98 vs. the industry median of 6.23, Cardinal Health has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Medical Distribution company?
The median Interest Coverage among Medical Distribution companies is 6.23, based on 89 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cardinal Health's current Interest Coverage of 8.34 is 33.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cardinal Health and its competitors. For the Medical Distribution industry, the median Interest Coverage is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cardinal Health's current Interest Coverage is 8.34, which is 24% below median its own 10-year median of 10.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cardinal Health stock overvalued right now?
Based on GuruFocus' analysis, Cardinal Health (LTS:0HTG) is currently considered Significantly Overvalued. The stock's GF Value™ is $140.72, compared to a current price of $238.69 — trading 69.6% above its estimated fair value. The current Interest Coverage is 8.34, which is 24% below median its 10-year median of 10.98 and 33.9% above the Medical Distribution industry median of 6.23. Cardinal Health's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Cardinal Health (LTS:0HTG), the current Interest Coverage is 8.34 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cardinal Health (LTS:0HTG) Overvalued in 2026?
Based on GuruFocus' analysis, Cardinal Health stock appears to be overvalued.
The current stock price of $238.69 is trading 69.6% above its estimated GF Value™ of $140.72.
GuruFocus considers Cardinal Health to be Significantly Overvalued.
Key valuation signals for LTS:0HTG:
Interest Coverage: 8.34 (24% below median its 10-year median of 10.98)
GF Value™: $140.72 vs. price of $238.69 (69.6% above fair value)
Industry Position: 33.9% above the Medical Distribution median (#36 of 89)
No single metric tells the full story. See the LTS:0HTG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cardinal Health is one of three leading pharmaceutical wholesalers in the US, engaged in sourcing and distributing of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. Cardinal, Cencora, and McKesson hold well over 90% of the US pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.
83GF Score
Get the complete analysis for LTS:0HTG
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