CAHNEUTRAL

CAH Quick Ratio Analysis

0.42x

Higher than 5% of Healthcare sector peers

Updated 5h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to cover its short-term bills using only its most liquid assets, like cash and receivables, excluding inventory.

Sector Performance

5th percentile

CAH

0.42x

Sector Median

1.15x

Sector Avg

1.57x

Prior Period

0.38x(Apr 2026)

↑ Improving

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Deep Analysis

The quick ratio measures a company's ability to cover its short-term bills using only its most liquid assets, like cash and receivables, excluding inventory.

At 0.42x, Cardinal Health holds $0.42 in liquid assets for every $1 of current liabilities. That is well below the healthcare sector median of 1.20x, placing the company in the 3rd percentile among peers. The year-over-year change is N/A, the quarter-over-quarter change is N/A, and no 8-quarter trend is available. The very low level, combined with no trend data, implies elevated short-term liquidity risk that an investor should weigh. This metric contradicts the overall NEUTRAL verdict because it points to a clear weakness in near-term financial flexibility.

Frequently Asked Questions

What does the Quick Ratio tell investors about CAH?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

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

CAH's Quick Ratio of 0.42x compares to a Healthcare sector median of 1.15x, placing it in the 5th percentile.

Who are CAH's closest peers by Quick Ratio?

The closest Healthcare peers by Quick Ratio include: ALGN (1.15x), BAX (1.12x), RVTY (1.25x), DGX (1.28x), BIO (1.00x).

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Learn More About Quick Ratio

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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

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.