McKesson Corporation (MCK)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 308,743,000 | 301,155,000 | 290,742,000 | 283,832,000 | 276,496,000 | 273,874,000 | 272,026,000 | 268,122,000 | 263,687,000 | 256,729,000 | 250,755,000 | 245,223,000 | 238,228,000 | 237,621,000 | 234,203,000 | 231,016,000 | 231,082,000 | 224,976,000 | 222,003,000 | 217,457,000 |
| Property, plant and equipment | US$ in thousands | 2,316,000 | 2,201,000 | 2,171,000 | 2,172,000 | 2,177,000 | 2,140,000 | 2,071,000 | 2,083,000 | 2,092,000 | 2,064,000 | 2,222,000 | 2,549,000 | 2,581,000 | 2,518,000 | 2,471,000 | 2,392,000 | 2,365,000 | 2,408,000 | 2,493,000 | 2,466,000 |
| Fixed asset turnover | 133.31 | 136.83 | 133.92 | 130.68 | 127.01 | 127.98 | 131.35 | 128.72 | 126.05 | 124.38 | 112.85 | 96.20 | 92.30 | 94.37 | 94.78 | 96.58 | 97.71 | 93.43 | 89.05 | 88.18 |
March 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $308,743,000K ÷ $2,316,000K
= 133.31
The fixed asset turnover ratio for McKesson Corporation has been consistently high over the most recent quarters, reflecting the company's ability to efficiently generate revenue from its fixed assets. The ratio has shown a general upward trend since the end of 2019, reaching a peak of 136.83 in December 2023. This indicates that McKesson is effectively utilizing its fixed assets to generate sales.
The high fixed asset turnover ratio suggests that McKesson is managing its fixed assets efficiently and effectively. It indicates that the company is generating a significant amount of sales relative to its investment in fixed assets. This is a positive sign for investors and stakeholders as it shows that McKesson is optimizing its asset base to generate revenue.
Overall, the trend of increasing fixed asset turnover ratio indicates that McKesson's operational efficiency in utilizing its fixed assets has improved over the period under review. This efficiency can contribute to the company's profitability and long-term financial performance.
Peer comparison
Mar 31, 2024
See also:
McKesson Corporation Net Fixed Asset Turnover (Quarterly Data)