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 Average Total Inventories for the quarter that ended in Dec. 2023 was $17,719 Mil. Cardinal Health's Revenue for the
three
months ended in Dec. 2023 was $57,445 Mil.
Cardinal Health's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.31.
Cardinal Health's Inventory-to-Revenue for the quarter that ended in Dec. 2023
increased
from Sep. 2023 (0.30) to Sep. 2023 (0.31)
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
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 Dec. 2023 was 29.08.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Cardinal Health's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.14.
Cardinal Health Inventory-to-Revenue Historical Data
The historical data trend for Cardinal Health's Inventory-to-Revenue 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.
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Cardinal Health Annual Data
Trend
Jun14
Jun15
Jun16
Jun17
Jun18
Jun19
Jun20
Jun21
Jun22
Jun23
Inventory-to-Revenue
0.09
0.09
0.09
0.08
0.08
Cardinal Health Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Inventory-to-Revenue
0.32
0.34
0.31
0.30
0.31
Competitive Comparison
For the Medical Distribution subindustry, Cardinal Health's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue Distribution
For the Medical Distribution industry and Healthcare sector, Cardinal Health's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Cardinal Health's Inventory-to-Revenue falls into.
Cardinal Health Inventory-to-Revenue Calculation
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 fiscal year that ended in Jun. 2023 is calculated as
* 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-to-Revenue Explanation
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
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 Dec. 2023 is calculated as:
* 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 Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Cardinal Health's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
Cardinal Health (Cardinal Health) Business Description
Cardinal Health is one of three leading pharmaceutical wholesalers in the U.S., engaged in sourcing and distributing of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and McKesson, the three comprise well over 90% of the U.S. pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.
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