CAHNEUTRAL

Return on Equity (ROE)

-56.1%

Higher than 11% of Healthcare sector peers

Updated 1928h ago

Sector Performance

11th percentile

CAH

-56.1%

Sector Median

8.9%

Sector Avg

37.1%

📊

Deep Analysis

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.

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 8.9%, placing it in the 11th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: ZBH (6.1%), TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%).

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.