Cardinal Health - Case Study Example

Comments (0) Cite this document
It is also involved in the provision of supply chain services like OTC drug distribution, generic and branded prescription courtesy of its pharmaceutical…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
Cardinal Health
Read TextPreview

Extract of sample "Cardinal Health"

Company Profile Cardinal Health Inc., founded in 1979, is a major distributor of pharmaceuticals, equipmentand other medical supplies. It is also involved in the provision of supply chain services like OTC drug distribution, generic and branded prescription courtesy of its pharmaceutical division. Additionally, the company has franchised retail pharmacies known as Medicine Shoppe. Under this platform, the company sells laboratory and surgical supplies, medical supplies and provides data management and logistical support services. Their clientele ranges from hospitals, retail pharmacies, nursing homes and general health care businesses. The company also has markets outside the U.S such as in China.
Company Analysis
The latest analysis of the company reveal that the company has over 30,000 employees, a sales revenue of just over $91 billion, a market value of $ 29 billion and income assets totaling 26, 033. Additionally, the sales growth is recorded at – 9.9 % while the employees growth rate is 1.2%. These figures have led to the analysis that the firm has a medium credit rating. In its last fiscal year, in June 2014, the company was ranked number 22 in the list of FORTUNE 500 companies, number 22 in the FORTUNE 1000 and number 465 in the FT Global 5000 category.
Therefore, the company is a trend setter in the healthcare sector and is the world’s top most provider of cost effective medical services to ambulatory service providers, hospitals and pharmaceuticals.
Financial Position of Company
For the last two fiscal years, the company has recorded constant growth in earnings per share and dividends given to the shareholders. For example, in 2013, the EPS was 0.97 while in 2014, it was 3.38. For dividends paid, the amount per share rose from $1.09 in 2013 to $1.25 in 2014. However, there was a marked overall decline in the total revenue from around $ 101 billion in 2013, to approximately $91 billion in 2014.
This suggests that the shareholders’ wealth has improved in the past two years even though they have recorded significantly lower revenue levels. Therefore, a hold recommendation is appropriate as the shares might yield more value in the following financial quarters. This position is backed further by the latest stock price value of the company. The share moved by 0.6 points and is currently selling at $ 89.03 which is a 0.68% increase.
The company’s operating margin percentage has risen from 0.99 in 2013 to 2.27 in 2014, an indication that the NOWC has increased. This signals to the company’s improved working capital. At 2.27, the company is not at risk of bankruptcy.
The company’s long term debt repayment placed at 0 %, improved the company’s long term debt to equity ratio from 0.65 in 2013 to 0.62 in 2014. By the end of the third quarter in 2014, the ratio stood at 0.56. Consequently, the company was ranked number 2 in the industry, number 6 in the sector and number 92 in the S&P category. The company is in a good financial position.
The low revenue decline of 10% in 2014, which exceeded the projected 15%, has been attributed to the increase in the levels of EBTDA and an increase in free cash flow. During 2014, the company recorded better figures in cash flow operations which was mainly due to the adoption of conservative financial policies. Additionally, the generic sourcing venture and the CVS contract extension have been instrumental in the company’s increased cash flow and healthy business risk profile.
It is projected that in the next fiscal years, Cardinal Health will increase its revenues so that it is at par with the industry standards to generate additional cash flow. Currently, the industry is flooded with pharmaceutical distribution services and many companies are recording low revenue levels as compared to previous years. It is advisable that all companies should diversify their portfolios to include other markets. However, as it is, the industry is unlikely to sustain high profit margins.
Revenue per share ($)
EBITDA per share ($)
EBIT per share ($)
Earnings per share ($)
Free Cash flow per share ($)
Dividends Per Share
Net Income $ million
Cash From Operations
Capital Expenditures
Free Cash flow ( $ billion)
S&P 500 ranking
Strengths and Weaknesses of Company
The company’s greatest strengths include:-
a. Its well-trained global staff.
b. Its use of innovative advertising strategies like the Pharmacy Health network.
c. Its considerable presence in the oncology sector.
d. Its vast distribution base in over 60,000 locations.
e. Its development of Pyxis MedStation.
However, the company has a few weaknesses which include-its damaged image due to the controversy surrounding the Oxycodone drug, and the decline of its cardinal health medical branch. Additionally, the company faces many threats in the form of rigid healthcare regulation, disruption of their services through natural disasters and the effects of the global financial crisis.
Despite the problems, the company can address these drawbacks by capitalizing on emerging opportunities in China. The acquisition of Yong Yu Company in China has given them an opportunity to tap emergent markets in Asia. Additional measures may include- acquiring Kinray in order to improve the company’s standing in the independent pharmacy market and adopting a new branding strategy, to gain a competitive advantage over the other firms in the pharmaceutical industry like McKesson Pharmaceutical.
Free Cash flow= Cash from Operations -Capital Expenditures
N.OW.C=Operating Current Assets-Operating Current Liabilities
Works Cited Read More
Cite this document
  • APA
  • MLA
(“Cardinal Health Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from
(Cardinal Health Case Study Example | Topics and Well Written Essays - 500 Words)
“Cardinal Health Case Study Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



...?Task 3 3.1As a care worker in a specific care setting A) Explain what you understand by quality control in your care setting. I understand that quality control in my care setting refers to the process of ensuring excellence. I understand that it refers to processes, activities, and requisites imposed by government and authorized agencies in order to ensure the quality delivery of health services. I believe that this quality control also refers to guidelines in the care setting which all health workers must follow in order to promote the efficient delivery of health services. B) Explain how you use quality assurance procedures to guide your daily activities. I use quality assurance...
5 Pages(1250 words)Essay

Health/ Mental Health/ Healthcare

...see from my CV. I have attended to patients' needs; this in turn has rewarded me with a deep sense of satisfaction. My joy is renewed whenever they smile and tell me how comfortable they are. During my experiences I have had the opportunity to observe medical and dentistry checks along with participating in discussions and was able to consult doctors regarding a career in health. This has provided me with an enhanced understanding of the working environment, as well as demonstrating the importance of teamwork between healthcare professionals, ensuring that patients received the best treatments and care. Having the opportunity to speak to patients on a one to one basis, I was able to hone my communication skills towards...
3 Pages(750 words)Personal Statement

According to Joseph Cardinal Ratzinger, who is God

...?According To Joseph Cardinal Ratzinger, Who Is God? Table of Contents Table of Contents 2 Introduction 3 Who is God? 3 Conclusion 4 References 5 Introduction Since the era of resurrection, Christianity and its standpoints have apparently one of the most discussed, critiqued, and frequently assessed phenomenon in mythology. The most imperative question identified during this era was whether God Himself took birth as Jesus or, Christ was a human being who, by his destiny, became the bearer of a vital responsibility to communicate God’s intentions playing the role of His son and guided by the Holy Spirit. Un-astonishingly, these questions have been of sole interest not only for religious people but also for skeptic mythologists... , which...
3 Pages(750 words)Essay

Cardinal John Henry Newman

...Religion Essay- Cardinal John Henry Newman Briefly describe one of the major turning points in the history of Newman's "religious opinions" In a reflective analysis of the history of Cardinal Newman's "religious opinions", one notices some essential turning points in his religious opinions which were significantly recognized by him. One gets a fair knowledge about these turning points in Newman's "religious opinions" from his Apologia pro Vita Sua (1864), which is a classic in English literature, and he added to the original title of the book the subtitle 'Being a History of His Religious Opinions' in 1873. Thus, one of the major influences on Newman's teachings was Dr Hawkins was central to his...
3 Pages(750 words)Book Report/Review

Health Science: Family Health

...Health Science: Family Health The physiological and psychological aspects of a family with a grandmother with Alzheimer's Disease (AD Aspects that relate to family members, social aspects including the availability of social, medical, and community services and resources, legal, medical, or ethical aspects involved, other aspects of an issue derived from reading or the accounts of others. Disease Background Alzheimer's disease (AD) is a very common form of age-related dementia gradually starting with signs of forgetfulness of recent events, names or things and progresses to anxiousness and aggressiveness requiring full time care. Cognitive (intellectual) impairment extends to the domains of language...
8 Pages(2000 words)Essay

Health Studies/Health Reform

...Comparing top health concerns in Canada and the US using the Kingdon Model A top health concern in Canada is the nations heart health strategy. The News, a Canadian daily newspaper, reported that with the new heart health strategy, billions of Canadian dollars could be saved.1 In the United States, however, President Barack Obama expressed that the countrys main concern at the moment is to reduce health cost but at the same time extending coverage to the uninsured and people with medical condition.2 We compare the two priorities of the two countries by deriving insights from the Kingdon model. John Kingdons model on agenda, alternatives, and public...
6 Pages(1500 words)Essay

Franciscan Values in Cardinal Stritch University

...and become united. The multicultural faculty and learners expand the horizons of the university beyond limits. The university offers indiscriminate and unbiased teaching to people belonging to all classes. The values emphasize upon maintaining the environmental health and safety. The Franciscan values discourage violence by resolving interpersonal clashes. Intended outcomes: Through this course, Cardinal Stritch University becomes home to disabled and socially excluded people where they can acquire similar lifestyle as others. People from all ethnic backgrounds are able to benefit from the course. The university intends to develop increased communication links and hence better understanding between...
2 Pages(500 words)Essay


...Running head: HEALTH IMPACT ASSESSMENT: HEALTH COMMUNITIES, HEALTH CITIES Health Impact Assessment: Health Communities, Health Cities Insert Insert Course Title Insert Instructor’s Name 03 August 2011 Health Impact Assessment: Health Communities, Health Cities Health Impact Assessment using Barton et al Spectrum Approach The major objective of this assessment will involve completing HIA report on the proposed development of Sainsbury Superstore in Ashton Gate. In carrying out the assessment, the aim will be largely to identify the different ways in which spatial planning...
12 Pages(3000 words)Essay

A Catholic Cardinal and the One God of All

...Read Chapter 2 of Miroslav Volf, Allah: A Christian Response (San Francisco: HarperOne, , 40-59 Choose the option that most accurately describes how much of the reading assignment you have completed: a. _____ I read 100% of the reading. b. _____ I read between 75-99% of the reading. c. _____ I read 50-74% of the reading. d. _____ I read less than half of the reading. e. _____ I didn’t read this week. 2. Think of the emotions and the fears that followed in the wake of September 11, 2001. What parallels might we find in the European Christian response to the fall of Constantinople? Two parallels can be identified between emotions and fears that followed the September 11 event and the European Christian response to the fall... Chapter 2 of...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Cardinal Health for FREE!

Contact Us