McKesson Corporation (MCK)
Inventory turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 305,530,000 | 272,946,000 | 263,887,000 | 244,086,000 | 229,386,000 |
| Inventory | US$ in thousands | 21,100,000 | 19,691,000 | 18,702,000 | 19,246,000 | 16,734,000 |
| Inventory turnover | 14.48 | 13.86 | 14.11 | 12.68 | 13.71 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $305,530,000K ÷ $21,100,000K
= 14.48
McKesson Corporation's inventory turnover has fluctuated over the past five years, ranging from 12.68 in 2021 to 14.48 in 2024. This ratio indicates how efficiently the company manages its inventory by measuring the number of times inventory is sold and replaced during a specific period. A higher inventory turnover generally signifies that the company is efficiently selling its products and managing its stock levels.
The trend suggests that McKesson has been effectively managing its inventory turnover ratio over the years, with slight variations. The increase in the inventory turnover ratio from 2021 to 2024 indicates that the company has improved its inventory management efficiency during this period.
Overall, the inventory turnover ratios for McKesson Corporation are relatively healthy and suggest effective inventory management practices. However, further analysis in conjunction with other financial ratios and considerations of industry benchmarks would provide a more comprehensive understanding of the company's operational efficiency.
Peer comparison
Mar 31, 2024