McKesson Corporation (MCK)
Days of inventory on hand (DOH)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.03 | 14.02 | 13.43 | 13.41 | 11.75 | |
| DOH | days | 24.28 | 26.03 | 27.19 | 27.21 | 31.07 |
March 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.03
= 24.28
Based on the data provided, McKesson Corporation's days of inventory on hand (DOH) have shown a decreasing trend over the past five years. The DOH decreased from 31.07 days as of March 31, 2021, to 24.28 days as of March 31, 2025. This indicates that the company has been more efficient in managing its inventory levels, as it takes fewer days to sell the existing inventory.
A lower DOH value generally reflects better inventory management practices, such as effective demand forecasting, streamlined inventory control, and efficient supply chain management. It suggests that McKesson has been improving its inventory turnover rate and reducing the risk of stock obsolescence or holding excessive inventory levels.
Overall, the decreasing trend in McKesson Corporation's DOH over the period indicates positive operational efficiency and effective inventory management practices within the organization. This improvement may positively impact the company's financial performance and overall competitiveness in the healthcare industry.
Peer comparison
Mar 31, 2025