McKesson Corporation (MCK)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 14.00 | 14.29 | 14.26 | 14.20 | 12.42 | |
| DSO | days | 26.07 | 25.54 | 25.60 | 25.70 | 29.39 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.00
= 26.07
The days of sales outstanding (DSO) for McKesson Corporation have shown a positive trend over the years based on the provided data. As of March 31, 2021, the DSO was 29.39 days, indicating the average number of days it takes for the company to collect revenue from its customers. Subsequently, the DSO decreased to 25.70 days by March 31, 2022, and continued to improve to 25.60 days by March 31, 2023. By March 31, 2024, the DSO further declined to 25.54 days before slightly increasing to 26.07 days by March 31, 2025.
Overall, the decreasing trend in DSO signifies that McKesson is managing its accounts receivable effectively by collecting payments from customers in a timelier manner. This improvement in DSO reflects positively on the company's liquidity position and efficiency in cash flow management. However, the slight increase in DSO in the latest year may warrant further monitoring to ensure that the collection process remains efficient and aligns with industry standards.
Peer comparison
Mar 31, 2025