Cardinal Health, Inc.
Supplier Financial Health Report
Overview
June 2024
USA
Incorporated Country
48,000
Number of Employees
A+
Credit Rating
15
Count of Investments
Five-Year Financial Trend Analysis for Cardinal Health, Inc.
CONSTANT
Credit Trend
68.55%
Total Balance Sheet Growth Rate
-41.03%
Total Debt Growth Rate
The balance sheet of Cardinal Health also shows a positive trend, with total assets increasing from $26.03B in 2014 to $43.88B in 2022, a substantial 68.55% increase. The company's cash position has also improved, rising from $2.86B in 2014 to $4.72B in 2022, a 64.64% increase.
However, the company's total debt has decreased from $9.01B in 2018 to $5.32B in 2022, a 41.03% decrease. This decrease in debt is a positive sign, indicating the company's ability to manage its debt effectively. On the other hand, the liabilities have increased from $33.88B in 2018 to $44.58B in 2022, a 31.59% increase. This increase in liabilities could be a concern, but it is important to note that the company's revenue and cash position have also grown significantly during this period.
The stockholders equity, however, has shown a concerning trend, dropping from $6.06B in 2018 to -$706M in 2022, a significant 111.65% decrease. This decrease in equity could be a red flag, indicating potential financial instability. However, it is important to note that the company's revenue and cash position have continued to grow during this period.
The net income and EBITDA have shown a negative trend, with the net income dropping from $1.17B in 2014 to -$932M in 2022, and EBITDA dropping from $1.13B in 2018 to $72M in 2022. This negative trend in net income and EBITDA could be a concern, but it is important to note that the company's revenue and cash position have continued to grow during this period.
Cardinal Health, Inc. has a credit rating of A+ and a credit score of 97, indicating strong financial health and low credit risk. The company's credit trend has been constant over the past five years. The company has had one funding round, raising $780M, and one exit. The company has made 15 investments and has 15 lead investments.
In summary, Cardinal Health, Inc. has shown a robust financial health over the past five years, with increasing revenue, a growing balance sheet, and a improving cash position. However, the decrease in stockholders equity and the negative trend in net income and EBITDA are concerning. The company's credit rating and score indicate strong financial health, and the constant credit trend is a positive sign. Overall, Cardinal Health, Inc. is a financially healthy company with a strong position in the healthcare industry.
Financial Health Risk Assessment for Cardinal Health, Inc.
LOW
Credit Risk
LOW
Bankruptcy Risk
LOW
Financial Health Risk
The company's balance sheet also shows a positive trend, with total assets increasing from $26.03 billion in 2014 to $43.88 billion in 2022, a substantial 68.55% increase. The cash position has also improved, rising from $2.86 billion in 2014 to $4.72 billion in 2022, a 64.64% increase. However, there are some areas of concern that merit further investigation.
The most significant red flags are the concerning decrease in stockholders equity from $6.06B in 2018 to -$706M in 2022, and the negative trend in net income and EBITDA, which dropped from $1.17B and $1.13B, respectively, in 2014 to -$932M and $72M in 2022. The decrease in equity could be a potential financial instability indicator, and the negative net income and EBITDA trends suggest that the company may be struggling to generate profits from its operations.
Additionally, the increase in liabilities from $33.88B in 2018 to $44.58B in 2022, while not a significant concern given the revenue and cash position growth, is still worth monitoring. The financial ratios also indicate a mixed picture. While the current ratio of 1.08 and low debt ratio of 0.12 are positive signs, the negative debt-to-equity ratio of -63.15 and negative profitability ratios, such as the gross profit margin of 0.04, net profit margin of -0.01, return on assets (ROA) of -0.02, and return on equity (ROE) of -1.71, are concerning. The asset turnover ratio of 4.11 is relatively high, but it should be weighed against the negative profitability ratios.
The Altman Z-Score of 5.47 is well above the threshold of 1.8, indicating a low probability of bankruptcy, which is a positive sign. However, it's important to note that the debt-to-equity ratio significantly contributes to this score.
Overall, while Cardinal Health, Inc.'s financial health shows a robust growth trend, the concerning decrease in equity, negative profitability trends, and increasing liabilities warrant further investigation. It's crucial for investors and stakeholders to closely monitor the company's financial performance and consider seeking professional advice before making any significant financial decisions.
List of UEIs for Cardinal Health, Inc.
ABOUT SUPPLIER FINANCIAL HEALTH REPORTS
Ark provides definitive, consolidated analyses of every vendor, subcontractor, supplier, grant awardee, non-profit, and investment organization in the national security and defense sectors. Supplier financial health reports are AI-assisted analyses of the current health and stability of an organization, as well as the trends, trajectory, and risk indicators that partners and stakeholders need to know about.
Explore Additional Analyses
ABOUT ARK.AI
The Ark is the only software platform purpose-built for Defense Acquisition that leverages authoritative commercial data and AI-enabled Applications designed to solve Acquisition challenges. With the Ark, analysts and decision-makers gain the ability to manage Acquisition programs proactively, allowing them to unwind the legacy complexity and effectively field modern warfighting systems that compete with China.
The Leading Defense Acquisition Software.
OUR APPLICATIONS
AI-enabled Applications within The Ark reflect standard workflows across the Defense Acquisition Process. From Science & Technology to Modernization, these Applications allow for the execution of rapid, efficient, data-informed decisions, standardized reporting, and efficient workflow management. The Ark enables your team to transform Defense Acquisition into a strategic advantage.
