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Cardinal Health (Cardinal Health) Financial Strength : 7 (As of Mar. 2024)


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What is Cardinal Health Financial Strength?

Cardinal Health has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Cardinal Health's Interest Coverage for the quarter that ended in Mar. 2024 was 17.73. Cardinal Health's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.03. As of today, Cardinal Health's Altman Z-Score is 5.14.


Competitive Comparison of Cardinal Health's Financial Strength

For the Medical Distribution subindustry, Cardinal Health's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Medical Distribution Industry

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

* The bar in red indicates where Cardinal Health's Financial Strength falls into.



Cardinal Health Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Cardinal Health's Interest Expense for the months ended in Mar. 2024 was $-33 Mil. Its Operating Income for the months ended in Mar. 2024 was $585 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $4,667 Mil.

Cardinal Health's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*585/-33
=17.73

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Cardinal Health's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1187 + 4667) / 219644
=0.03

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Cardinal Health has a Z-score of 5.14, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.14 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Cardinal Health has the Financial Strength Rank of 7.


Cardinal Health Financial Strength Related Terms

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


Cardinal Health (Cardinal Health) Business Description

Address
7000 Cardinal Place, Dublin, OH, USA, 43017
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.
Executives
Deborah Weitzman officer: CEO, Pharmaceutical Segment 600 WEST 22ND STREET, SUITE 300, OAK BROOK IL 60523
Mary C. Scherer officer: Chief Accounting Officer 6026 LUDWIG STREET, POWELL OH 43065
Ola M Snow officer: Chief Human Resources Officer 7000 CARDINAL PLACE, DUBLIN OH 43017
Stephen M Mason officer: CEO, Medical Segment 7000 CARDINAL PLACE, DUBLIN OH 43017
Jessica L Mayer officer: Chief Legal/Compliance Officer 7000 CARDINAL PLACE, DUBLIN OH 43017
Michelle D. Greene officer: Chief Information Officer 1141 N. OLD WORLD 3RD STREET, UNIT # 2414, MILWAUKEE WI 53203
Aaron E Alt officer: Chief Financial Officer 3001 COLORADO BLVD., DENTON TX 76210
Michelle Brennan director 1855 S. GRANT STREET, SAN MATEO CA 94402
Sujatha Chandrasekaran director 77 HOT METAL STREET, PITTSBURGH PA 15203
Christine Mundkur director
Steven Barg director ELLIOTT MANAGEMENT CORPORATION, 40 WEST 57TH STREET, NEW YORK NY 10019
Patricia M English officer: Chief Accounting Officer 7000 CARDINAL PLACE, DUBLIN OH 43017
Sheri H. Edison director 1069 STATE ROUTE 46 EAST, BATESVILLE IN 47006
Jason M. Hollar officer: Chief Financial Officer 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
John H Weiland director C/O C.R BARD INC, 730 CENTRAL AVE, MURRAY HILL NJ 07974

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