McKesson Corporation (MCK)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	308,734,000	276,496,000	263,638,000	238,047,000	230,835,000
Property, plant and equipment	US$ in thousands	2,316,000	2,177,000	2,092,000	2,581,000	2,365,000
Fixed asset turnover		133.30	127.01	126.02	92.23	97.60

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $308,734,000K ÷ $2,316,000K
= 133.30

The fixed asset turnover ratio for McKesson Corporation has shown a consistent and positive trend over the past five years, indicating the company's efficiency in generating revenue from its investment in fixed assets. The ratio has increased steadily from 97.60 in 2020 to 133.30 in 2024, reaching its peak in the latest fiscal year. This suggests that McKesson has been able to effectively utilize its fixed assets to generate sales, reflecting improved operational efficiency and asset productivity. The upward trend in the fixed asset turnover ratio is a positive indicator of McKesson's ability to efficiently manage and deploy its fixed assets to drive revenue growth.