The review of Net Profit Margin witnessed a The Net Profit Margin declined from 0.94% in 2019 to 0.13 in 2023.
The average EBITDA Margin for the period under analysis was 0.38%, with 2020 and 2019 performing the worst and best,
In the current year, Cardinal Health was able to cover its interest liabilities 7.86 times in the current year- compared to 2019 when it was 6.96 times.
The Asset turnover stood at 4.72 times in 2023 from 3.55 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Cardinal Health has increased year on year. The revenue increased by 1% between 2019 and 2020 and a further 6.2% increase was recorded between 2020 and 2021. There also occurred an increase of 13% between 2022 and 2023 (the current period).
Cardinal Health’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio/acid test increased from 1.07:1/0.54:1 to 1:1/0.53:1 on the last year. Which implies that the company still does not have enough assets to settle its current liabilities.
Capital Structure
Cardinal Health is both equity and debt financed.
The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be low as it stood at -16.23 in the current year.
