McKesson Corporation (MCK)
Inventory turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 345,728,000 | 296,367,000 | 264,353,000 | 250,836,000 | 226,080,000 |
| Inventory | US$ in thousands | 23,001,000 | 21,139,000 | 19,691,000 | 18,702,000 | 19,246,000 |
| Inventory turnover | 15.03 | 14.02 | 13.43 | 13.41 | 11.75 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $345,728,000K ÷ $23,001,000K
= 15.03
McKesson Corporation's inventory turnover has shown a steady increase over the past five years, reflecting a more efficient management of inventory. The turnover ratio, which measures how many times a company sells and replaces its inventory during a specific period, has improved from 11.75 in March 2021 to 15.03 in March 2025. This indicates that McKesson is selling its inventory at a faster rate compared to previous years, which can lead to lower carrying costs, improved cash flow, and potentially higher profits. The consistent upward trend in inventory turnover suggests that McKesson is effectively managing its inventory levels and optimizing its operations.
Peer comparison
Mar 31, 2025