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Cardinal Health, Inc. Financial Analysis
XXXXX
XXXXXXX

TABLE OF CONTENTS Page no. EXECUTIVE SUMMARY 3 INTRODUCTION 5 FINANCIAL ANALYSIS 6 I. Liquidity Ratios 6

A. Working Capital B. Current Ratio C. Inventory Turnover D. Days in Inventory E. Receivable Turnover F. Average Collection Period

II. Solvency Ratios 9

A. Debt to Total Assets Ratio B. Times Interest Earned Ratio

III. Profitability Ratios 11

A. Earnings Per Share B. Gross Profit Rate C. Profit Margin Ratio D. Return on Assets Ratio E. Asset Turnover Ratio APPENDICES 15 REFERENCES 17

EXECUTIVE SUMMARY
XXXXX will attempt to analyze the efficiency and profitability of Cardinal Health, Inc. by conducting an examination of a series of financial ratios for the past three years. This analysis will include a comparison of Cardinal Health’s chief competitor, McKesson Corporation. XXXXX exploration of the financial performance of both companies will be accomplished by evaluating their liquidity, solvency, profitability ratios. It is through a careful analysis of these ratios that should determine Cardinal Health’s overall value to investors
Liquidity Ratios:
Capital Health’s sizable Working Capital of $3.3 Billion in 2012 should help it to meet its short-term obligations in the event that it should need to liquefy its assets. Cardinal Health’s increase in Working Capital from 2011 to 2012 can be seen as a sign of increased operational efficiency and improved assets management. Additionally, Cardinal Health’s Current Ratio of 1.2 in 2012 has remained stable during the past three years at a reasonable, though borderline level. McKesson’s much lower Working Capital ($1.9 Billion) and Current Ratio (1.1) should be of concern to possible investors. This may indicate possible problems with liquidity.

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