CAHNEUTRAL

CAH Current Ratio Analysis

0.91x

Higher than 10% of Healthcare sector peers

Updated 1091h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company's ability to pay short-term obligations with its short-term assets; Cardinal Health's 0.91x means its current assets cover only 91% of its current liabilities.

Sector Performance

10th percentile

CAH

0.91x

Sector Median

1.88x

Sector Avg

2.45x

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Deep Analysis

The current ratio measures a company's ability to pay short-term obligations with its short-term assets; Cardinal Health's 0.91x means its current assets cover only 91% of its current liabilities.

This sits far below the sector median of 1.93x, placing the company in the 9th percentile among healthcare peers. The trend direction is N/A, with no year-over-year or quarter-over-quarter change provided, so there is no data to assess whether liquidity is improving or deteriorating. The combination of a low liquidity level and no trend information implies a potential near-term cash strain, but the lack of historical data limits the ability to gauge the risk trajectory. This metric directly contradicts the overall NEUTRAL verdict, as the sub-1.0x ratio signals a notable liquidity weakness relative to peers.

Frequently Asked Questions

What does the Current Ratio tell investors about CAH?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does CAH's Current Ratio compare to its sector?

CAH's Current Ratio of 0.91x compares to a Healthcare sector median of 1.88x, placing it in the 10th percentile.

Who are CAH's closest peers by Current Ratio?

The closest Healthcare peers by Current Ratio include: BAX (1.95x), RVTY (1.80x), HIMS (1.69x), A (2.10x), DGX (1.59x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.