McKesson Corporation (MCK)

Days of inventory on hand (DOH)

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Inventory turnover 14.48 13.55 13.10 13.66 13.86 13.16 13.64 13.74 14.11 13.75 13.49 12.64 12.68 12.68 12.60 13.80 13.69 12.51 12.84 12.38
DOH days 25.21 26.93 27.87 26.72 26.33 27.73 26.77 26.57 25.87 26.54 27.05 28.88 28.78 28.78 28.97 26.45 26.67 29.17 28.42 29.48

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.48
= 25.21

The days of inventory on hand (DOH) for McKesson Corporation have shown some fluctuation over the past few quarters. The trend indicates that the company has generally maintained its inventory for approximately 25 to 29 days on average before it is sold.

On a quarterly basis, there is variability in the DOH metric, with the latest figure as of March 31, 2024, standing at 25.21 days, a slight decrease from the previous quarter. This suggests that McKesson may have managed its inventory more efficiently during that period.

Looking back over the past few years, there seems to be a somewhat consistent range for the DOH metric, with occasional spikes observed. Overall, a lower number of days of inventory on hand is often viewed positively as it indicates that the company is effectively managing its inventory levels, which can lead to cost savings and improved profitability.

It is essential for McKesson to continue monitoring and optimizing its inventory management processes to ensure that the DOH remains within an optimal range to support operational efficiency and financial performance.

Peer comparison

Mar 31, 2024

Company name
Symbol
DOH
McKesson Corporation
MCK
25.21
Cardinal Health Inc
CAH
24.88
Cencora Inc.
COR
24.41

See also:

McKesson Corporation Average Inventory Processing Period (Quarterly Data)