CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2021

Cardinal Health, Inc. reported total revenue of $162.5 billion for fiscal year 2021, marking a 6% increase over the prior year. This growth was primarily driven by the Pharmaceutical segment, which saw increased sales from pharmaceutical distribution and specialty solutions. The company's GAAP operating earnings significantly improved from a loss of $4.1 billion in fiscal 2020 to earnings of $472 million in fiscal 2021. However, this turnaround was heavily influenced by a substantial reduction in litigation charges related to opioid settlements. Non-GAAP operating earnings saw a modest decrease of 5% to $2.3 billion, impacted by COVID-19 related inventory reserves in the Medical segment and volume declines in the Pharmaceutical segment's generics program. Looking ahead, Cardinal Health has made strides in resolving its opioid-related legal liabilities by entering into a proposed settlement agreement that, if finalized, would see payments of up to $6.37 billion spread over 18 years. The company also completed the divestiture of its Cordis business in August 2021, which is expected to reduce annual revenue by approximately $800 million. Despite operational challenges like COVID-19 impacts and increased supply chain costs, the company's liquidity remains strong, with cash and equivalents increasing to $3.4 billion.