>
Switch to:

Cardinal Health Interest Coverage

: 5.45 (As of Jun. 2021)
View and export this data going back to 1994. Start your Free Trial

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 Jun. 2021 was $240 Mil. Cardinal Health's Interest Expense for the three months ended in Jun. 2021 was $-44 Mil. Cardinal Health's interest coverage for the quarter that ended in Jun. 2021 was 5.45. 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:

NYSE:CAH' s Interest Coverage Range Over the Past 10 Years
Min: 5.71   Med: 12.42   Max: 19.27
Current: 9.97

5.71
19.27

NYSE:CAH's Interest Coverage is ranked higher than
50% of the 12 Companies
in the Medical Distribution industry.

( Industry Median: 13.15 vs. NYSE:CAH: 9.97 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Cardinal Health Interest Coverage Historical Data

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.

* Premium members only.

Cardinal Health Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.15 5.71 5.89 7.45 9.97

Cardinal Health Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage 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 6.61 10.22 11.15 12.91 5.45

Competitive 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 Distribution

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.



Cardinal Health Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Jun. 2021, Cardinal Health's Interest Expense was $-180 Mil. Its Operating Income was $1,794 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,365 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2021 )/Interest Expense (A: Jun. 2021 )
=-1*1794/-180
=9.97

Cardinal Health's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Cardinal Health's Interest Expense was $-44 Mil. Its Operating Income was $240 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,365 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*240/-44
=5.45

* 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 higher the ratio, the stronger the company's Financial Strength is.


Cardinal Health  (NYSE:CAH) 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

Thank you for viewing the detailed overview of Cardinal Health's Interest Coverage 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

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)