McKesson Corporation (MCK)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 14.28 | 14.25 | 14.19 | 12.41 | 11.57 | |
| DSO | days | 25.56 | 25.62 | 25.73 | 29.41 | 31.55 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.28
= 25.56
McKesson Corporation's days of sales outstanding (DSO) have shown a general decreasing trend over the past five years, from 31.55 days as of March 31, 2020, to 25.56 days as of March 31, 2024. This indicates that the company has been able to more efficiently collect its accounts receivable in recent years. A lower DSO implies that McKesson is collecting payments from customers faster, which can positively impact cash flow and working capital management. Overall, the downward trend in DSO reflects improved efficiency in the company's accounts receivable management and suggests a positive financial position for McKesson Corporation.
Peer comparison
Mar 31, 2024