Cardinal Health (BUE:CAH) ROCE % : 22.21% (As of Dec. 2024)

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What is Cardinal Health ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cardinal Health's annualized ROCE % for the quarter that ended in Dec. 2024 was 22.21%.

Cardinal Health ROCE % Historical Data

The historical data trend for Cardinal Health's ROCE % 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 ROCE % Chart

Cardinal Health Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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-25.11

3.44

-4.79

9.17

20.77

Cardinal Health Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															24.72	22.80	16.96	26.48	22.21

Cardinal Health ROCE % Calculation

Cardinal Health's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	1121165.984	/	( ( (10403759.917 - 8097599.935)	+	(40405854.922 - 31915619.544) )	/ 2 )
	=	1121165.984	/	( (2306159.982	+	8490235.378)	/ 2 )
	=	1121165.984	/	5398197.68
	=	20.77 %

Cardinal Health's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	2205840.024	/	( ( (40927577.701 - 32961437.551)	+	(47472020.475 - 35575230.356) )	/ 2 )
	=	2205840.024	/	( ( 7966140.15	+	11896790.119 )	/ 2 )
	=	2205840.024	/	9931465.1345
	=	22.21 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Cardinal Health (BUE:CAH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cardinal Health ROCE % Related Terms

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Cardinal Health Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » Cardinal Health Inc (BUE:CAH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CAH:USA CAH:Mexico 0HTG:UK CLH:Germany

Address

7000 Cardinal Place, Dublin, OH, USA, 43017

Website

https://www.cardinalhealth.com

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.