|Bid||52.03 x 1200|
|Ask||52.03 x 800|
|Day's Range||51.61 - 52.70|
|52 Week Range||39.05 - 60.69|
|Beta (5Y Monthly)||1.00|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 05, 2020 - Nov 09, 2020|
|Forward Dividend & Yield||1.94 (3.66%)|
|Ex-Dividend Date||Jun 30, 2020|
|1y Target Est||58.73|
Shares of Cardinal Health Inc. (NYSE: CAH) moved higher by 7.47% in the past three months. Before having a look at the importance of debt, let's look at how much debt Cardinal Health has.Cardinal Health's Debt Based on Cardinal Health's balance sheet as of May 11, 2020, long-term debt is at $6.75 billion and current debt is at $508.00 million, amounting to $7.26 billion in total debt. Adjusted for $2.33 billion in cash-equivalents, the company's net debt is at $4.93 billion.Investors look at the debt-ratio to understand how much financial leverage a company has. Cardinal Health has $41.15 billion in total assets, therefore making the debt-ratio 0.18. Generally speaking, a debt-ratio more than 1 means that a large portion of debt is funded by assets. As the debt-ratio increases, so the does the risk of defaulting on loans, if interest rates were to increase. Different industries have different thresholds of tolerance for debt-ratios. For example, a debt ratio of 25% might be higher for one industry, whereas normal for another.Why Investors Look At Debt? Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.See more from Benzinga * A Look Into Energy Sector Value Stocks * Looking Into CommScope Holding Co's Return On Capital Employed * Understanding Caterpillar's Unusual Options Activity(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cardinal Health's (CAH) fiscal fourth-quarter results reflect weak segmental performance.
Cardinal (CAH) delivered earnings and revenue surprises of 14.29% and -0.99%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?