Cardinal Health aims to close budget revenue gap associated with second program
Fiscal 2001 quarter ended December 31, 2000. Cardinal Health pulled them off
Litigation proceeds expected from cost of goods sold as vitamin maker guilty
Prices items from 1988 to 1998. Cardinal Health chooses to deduct the expected amount
Treat revenue from cost of goods sold instead of recognizing it as a non-operating item
Because the company will receive better returns.
Cardinal Health executives want to focus on filling Cardinal’s vacancy
Program Earnings Achieve Q3 Expected Earnings by Using Vitamin Gains
Term hump for fiscal year 2001 from Cardinal Health Advanced Statement
Exec cites gap in Cardinal Health’s second-quarter earnings estimates
Fiscal Year 2001. The phrase “don’t steal from Q3”. Refers to the third quarter of the fiscal year
Cardinal Health Case Study 2
In 2001, the additional gain will re-emerge from the previous gain due to lower revenue
Cardinal Health in trouble with SEC
Due to the recognition of profit as a reduction in cost of sales. Cardinal Health IPOs at $10M
Related Vitamin Lawsuit Leads to Lower Costs in Fiscal Second Quarter
2001 Violation of SEC GAAP. enterprise
A profit of $12 million was also posted on September 30, 2001, bringing the total profit to $22 million.
SEC Opposes Cardinal Health’s Action, Decides Company Should Consider It
Alternative Income Plans.
Cardinal Health’s $10M Contingent Vitamin Litigation Award March 31, 2008
December 2000 helped reach analyst consensus earnings per share. this victory
Records helped Cardinal Health meet estimated income levels. basic health
Executives defended the decision, saying it would help plug a hole in Cardinal’s budget
Earnings would have been $0.02 less than Q2 FY01
The last day of fiscal 2002, September 30, 2001, recorded a profit of $12 million, helping
to make up for the expected shortfall in revenue. The $12 million win was classified as reduced to
Cost of sales resulting in an increase in Cardinal Health’s operating profit.
Score Cardinal Health’s actions on a scale of 1-10, more than received
For $22 million of the $10 million and $12 million revenues, Cardinal Health gets a 3, which means
Cardinal Health Case Study 3
The company is relatively harmless. $22 million profit helps company
Estimated profit. Cardinal Health closes the budget revenue gap.