Curious about Cardinal Health net worth and the financial elements that drive its success? In 2024, Cardinal Health showed significant growth, with key revenue drivers in the pharmaceutical segment playing a vital role.
Let’s dive into an in-depth overview of how Cardinal Health’s financial strategies and revenue streams have shaped its fiscal journey. Brought to you by Ando Money.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Cardinal Health, Inc. |
| Full Name | Cardinal Health |
| Industry | Pharmaceuticals, Medical Products and Distribution |
| Traded as | NYSE: CAH |
| ISIN | N/A |
| Founded | 1971 |
| Founders | Robert D. Walter |
| Country/Territory | United States |
| Headquarters | Dublin, Ohio, USA |
| Chief Executive Officer | Jason Hollar |
| Number of Employees | 48,900 |
| Market Cap | $26.69 Billion |
| Total Assets | $45.12 Billion |
| Total Equity | Shareholders’ Deficit – $3.21 Billion |
| Revenue | $226.8 Billion |
| Net Income | $852 Million |
What is the Net Worth/Market Cap Of Cardinal Health in 2024?
As of 2024, Cardinal Health‘s market cap stands at $26.69 billion, positioning it among the major players in the healthcare sector. Comparatively, this places Cardinal Health behind some giants but also well ahead of many others.
By focusing on growth in pharmaceutical and specialty solutions, it continues to solidify its financial strength. For readers interested in exploring more about the richest company globally, visit this list of wealthy companies.
Below are some brands related to Cardinal Health:
- McKesson Corporation
- AmerisourceBergen
- CVS Health
- Walgreens Boots Alliance
- Johnson & Johnson
- Medline Industries
- Baxter International
- Gilead Sciences
- Abbott Laboratories
- Pfizer
Cardinal Health Financial Performance Overview
Key Revenue Drivers
The pharmaceutical segment remains the cornerstone of Cardinal Health’s success. With a revenue of $210 billion in Fiscal Year 2024, this segment grew by 11% compared to 2023.
Key contributions came from specialty solutions and increased brand pharmaceutical contracts.
Generic pharmaceutical sales also positively influenced revenues due to optimized sourcing strategies and improved contractual agreements.
This combination played a significant role in driving profitability across Cardinal Health’s portfolio, ensuring a balanced growth strategy that meets market demand while maximizing shareholder value.
Global Medical Products and Distribution
In the Global Medical Products and Distribution (GMPD) segment, the performance was notably impactful. The segment generated $12.4 billion in revenue, marking a slight increase of 1% compared to the previous year.
This growth, albeit moderate, was driven by volume expansion from existing customers and effective mitigation against inflationary pressures.
Segment profit increased to $92 million in FY 2024, a significant recovery from a loss of $147 million in FY 2023, which underscores the success of ongoing strategic initiatives in managing costs and improving efficiency.
Other Revenue Streams and Contributions
The “Other” segment made substantial contributions with revenue of $4.5 billion in FY 2024, representing a growth of 12% year-over-year.
The growth was distributed across all three operating segments: At-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics.
OptiFreight Logistics saw an impressive increase in performance, driven by operational efficiency and customer satisfaction initiatives.
The Nuclear and Precision Health Solutions also performed admirably, contributing significantly to the overall revenue boost in the fiscal year.
Cash Flow Generation and Its Impact on Financial Health
Cardinal Health saw an all-time high operating cash flow of $3.8 billion and adjusted free cash flow of $3.9 billion for FY 2024.
This strong cash flow generation allowed the company to effectively allocate funds toward strategic priorities such as share repurchases, with $750 million allocated in FY 2025.
Furthermore, capital expenditures were expected to be between $500 million and $550 million, showcasing a commitment to future growth and stability.
Analysis of Segment Profit Margins
The segment profit margins in FY 2024 showed diverse trends across Cardinal Health’s various business units.
The Pharmaceutical and Specialty Solutions segment had a profit margin of 0.96%, slightly down from 1.00% the previous year.
Conversely, the GMPD segment’s profit margin reached 0.74%, marking a turnaround from a negative profit margin in FY 2023.
Effective management of inflation impacts and operational efficiency contributed to this stabilization, making it one of the focal points of Cardinal’s financial narrative.
Investment in Future Revenue Growth
Strategic investments have been crucial to Cardinal Health’s pursuit of sustained revenue growth.
Notable among these is a new joint venture with CVS Health named Averon, which aims to increase access to specialty pharmaceuticals at a lower cost through biosimilar sourcing.
Additionally, the new Advanced Therapy Solutions Innovation Center is expected to have a meaningful impact on future growth by addressing the needs of cell and gene therapies, both emerging and high-demand areas in the healthcare sector.
Fiscal Year Performance and Strategic Guidance
Cardinal Health raised its non-GAAP EPS guidance for Fiscal Year 2025 to $7.55 – $7.70 from at least $7.50, reflecting confidence in continued growth.
The Pharmaceutical and Specialty Solutions segment expects profit growth of 1% to 3%, while GMPD anticipates a revenue growth of 3% to 5%.
The guidance also includes an increase in share repurchase expectations by $250 million to a total of $750 million for FY 2025, emphasizing a shareholder-friendly approach.
FAQs About Cardinal Health
What Are the Key Revenue Segments for Cardinal Health?
The key revenue segments include Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution, and the “Other” segment.
How Did Their GMPD Segment Perform in 2024?
The GMPD segment performed well with $12.4 billion in revenue, showing a 1% growth from the previous year. Segment profit improved to $92 million, reversing a loss seen in FY 2023.
What Investments Has The Company Made for Future Growth?
Cardinal Health invested in a joint venture called Averon with CVS Health, focusing on biosimilars. It also opened the Advanced Therapy Solutions Innovation Center to support gene and cell therapy growth.
How Has Cardinal Health Managed Inflation and Its Effects?
They implemented mitigation strategies to address inflationary impacts, particularly within the GMPD segment, helping achieve a segment profit margin increase and stabilize overall profitability.
What Is the Strategic Guidance for Cardinal Health in 2025?
They has raised its fiscal year 2025 guidance for non-GAAP EPS to $7.55 – $7.70. Expected growth includes 1% to 3% in Pharmaceutical Solutions and 3% to 5% in GMPD revenues.
Conclusion
I hope this financial overview has provided clear insights into Cardinal Health’s fiscal journey in 2024.
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