McKesson Corporation (MCK)
Days of inventory on hand (DOH)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 15.04 | 13.91 | 13.13 | 11.78 | 14.01 | 13.13 | 12.70 | 13.25 | 13.43 | 12.65 | 13.04 | 13.09 | 13.41 | 12.82 | 12.31 | 11.63 | 11.75 | 11.73 | 12.05 | 13.19 | |
| DOH | days | 24.27 | 26.24 | 27.80 | 31.00 | 26.05 | 27.79 | 28.73 | 27.55 | 27.19 | 28.86 | 27.99 | 27.88 | 27.21 | 28.47 | 29.64 | 31.39 | 31.07 | 31.10 | 30.29 | 27.67 |
March 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.04
= 24.27
The days of inventory on hand (DOH) for McKesson Corporation have fluctuated over the past few years, ranging from a low of 24.27 days as of March 31, 2025, to a high of 31.39 days as of June 30, 2021. Generally, a lower DOH indicates that the company is more efficient in managing its inventory as it is able to sell its goods more quickly.
Analyzing the trend, we see that there was a decrease in DOH from March 31, 2025, to June 30, 2024, suggesting a possible improvement in inventory management during that period. However, there was an increase in DOH from June 30, 2024, to March 31, 2025, which could indicate a potential slowdown in inventory turnover.
It is important for McKesson Corporation to closely monitor and manage its inventory levels to optimize its working capital and ensure that excess inventory does not tie up resources. A balance must be struck to maintain adequate inventory levels to meet customer demand while avoiding overstock situations that can lead to storage costs and potential obsolescence issues.
Overall, the trend in McKesson's DOH provides insights into the company's inventory management efficiency and can be used to evaluate the effectiveness of its supply chain operations.
Peer comparison
Mar 31, 2025
See also:
McKesson Corporation Average Inventory Processing Period (Quarterly Data)