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.