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.