Cardinal Health Inc. (B) Harvard Case Solution & Analysis

Robert D. Walter Cardinal Health is built in the most valuable company in the help of the American health care industry and the world's largest distributor of medical products. With revenues of $ 81 billion in 2006, was ranked number 19 on the Fortune 500, and owns a third of drug distribution business. Walter started this evolution with Cardinal Foods, but I realized that this company will never become a major player in the food industry, given the large, powerful incumbents. Through a series of acquisitions, the company Walter applied in the pharmaceutical distribution industry. Cardinal Health was one of the few large companies in the U.S. that have been achieved earnings per share growth of more than 20 percent in 15 years. However, Wall Street question whether Cardinal Health can continue to grow in this remarkable speed through acquisitions. This is a common question, combined with questionable "stock split" accounting practices of wholesalers, including one of its suppliers, has been weighing down the stock price of Cardinal, despite their continued revenue growth. Cardinal Health, M & A juggernaut, got hit earnings speed. In October 2003, Cardinal Health showed that the SEC launched an investigation of questionable accounting practices in 2000 and 2001, in which Cardinal Health allegedly accepted $ 22 million profit from the settlement of litigation before they were completed. In May 2004, during the SEC investigation was transformed into a formal investigation. It was in July 2004, before the Cardinal said that the 2004 income, which was predicted to reach us "middle teens or better" will only be 11 percent higher than the previous year. In July 2007, Cardinal announced that it has reached a definitive agreement with the SEC $ 35 million, concluding an investigation of historical financial statements and the disclosure of information from 2000 to 2004. "Hide
by Mary B. Teagarden Source: Thunderbird School of Global Management 8 pages. Publication Date: January 1, 2009. Prod. #: TB0003-PDF-ENG

Cardinal Health Inc. (B) Case Solution Other Similar Case Solutions like

Cardinal Health Inc. (B)

Share This