McKesson Corporation (MCK)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 305,530,000 | 298,462,000 | 287,451,000 | 280,222,000 | 272,946,000 | 271,934,000 | 271,016,000 | 267,926,000 | 263,887,000 | 261,588,000 | 260,977,000 | 253,011,000 | 244,110,000 | 243,662,000 | 232,306,000 | 229,178,000 | 229,027,000 | 212,990,000 | 210,038,000 | 205,597,000 |
| Inventory | US$ in thousands | 21,100,000 | 22,020,000 | 21,945,000 | 20,510,000 | 19,691,000 | 20,657,000 | 19,876,000 | 19,505,000 | 18,702,000 | 19,024,000 | 19,342,000 | 20,016,000 | 19,246,000 | 19,211,000 | 18,435,000 | 16,607,000 | 16,734,000 | 17,020,000 | 16,356,000 | 16,604,000 |
| Inventory turnover | 14.48 | 13.55 | 13.10 | 13.66 | 13.86 | 13.16 | 13.64 | 13.74 | 14.11 | 13.75 | 13.49 | 12.64 | 12.68 | 12.68 | 12.60 | 13.80 | 13.69 | 12.51 | 12.84 | 12.38 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $305,530,000K ÷ $21,100,000K
= 14.48
The inventory turnover ratio for McKesson Corporation has shown a relatively stable and consistent trend over the past several quarters. The ratio has ranged from 12.38 to 14.48, indicating that on average, inventory is turned over approximately 13 times a year. This suggests that McKesson efficiently manages its inventory levels, converting its inventory into sales or revenue effectively.
The highest inventory turnover ratio of 14.48 was observed in March 2024, while the lowest ratio of 12.38 was recorded in September 2019. Overall, the company's inventory turnover has generally remained above 12, indicating a healthy rate of inventory turnover.
A higher inventory turnover ratio typically signifies that the company is effectively managing its inventory levels, which can lead to lower carrying costs and reduced risk of obsolete inventory. However, it is crucial to consider industry norms and company-specific factors when evaluating inventory turnover ratios.
Peer comparison
Mar 31, 2024
Mar 31, 2024