CAHNEUTRAL

CAH Return on Equity (ROE) Analysis

-56.1%

Higher than 5% of Healthcare sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a negative ROE of -56.1% means Cardinal Health is currently losing money relative to the equity invested.

Sector Performance

5th percentile

CAH

-56.1%

Sector Median

11.3%

Sector Avg

72.2%

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Deep Analysis

This is far below the healthcare sector median of 11.1% and places the company in the 9th percentile among sector peers, indicating exceptionally weak performance compared to competitors. The trend data is not available because only a single historical value was provided; year-over-year and quarter-over-quarter changes are both listed as N/A, so there is no basis to assess direction. The combination of an extremely low ROE with no trend history points to elevated investment risk, as the company is generating substantial losses with no evidence of improvement. This metric directly contradicts the overall NEUTRAL verdict—the severe negative ROE suggests fundamental trouble that a neutral rating does not reflect.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CAH?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does CAH's Return on Equity (ROE) compare to its sector?

CAH's Return on Equity (ROE) of -56.1% compares to a Healthcare sector median of 11.3%, placing it in the 5th percentile.

Who are CAH's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ABT (12.5%), ALGN (10.1%), TMO (13.5%), TECH (9.0%), VEEV (13.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.