McKesson Corporation (MCK)
Inventory turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 345,924,000 | 331,632,000 | 317,368,000 | 301,111,000 | 296,245,000 | 289,197,000 | 278,767,000 | 271,683,000 | 264,353,000 | 261,293,000 | 259,163,000 | 255,325,000 | 250,836,000 | 243,897,000 | 238,159,000 | 232,743,000 | 226,080,000 | 225,434,000 | 222,125,000 | 219,066,000 |
| Inventory | US$ in thousands | 23,001,000 | 23,837,000 | 24,176,000 | 25,571,000 | 21,139,000 | 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 |
| Inventory turnover | 15.04 | 13.91 | 13.13 | 11.78 | 14.01 | 13.13 | 12.70 | 13.25 | 13.43 | 12.65 | 13.04 | 13.09 | 13.41 | 12.82 | 12.31 | 11.63 | 11.75 | 11.73 | 12.05 | 13.19 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $345,924,000K ÷ $23,001,000K
= 15.04
McKesson Corporation's inventory turnover has shown some fluctuations over the periods provided. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring the number of times it sells and replaces its stock within a given timeframe.
From June 30, 2020, to March 31, 2025, the inventory turnover ratio ranged from a low of 11.63 to a high of 15.04. It peaked in March 31, 2025, indicating that McKesson was able to sell and replace its inventory more frequently during that period, which can be a positive sign of effective inventory management.
Overall, the trend in the inventory turnover ratio suggests that McKesson has been able to maintain a relatively steady turnover rate, which is important for ensuring optimal cash flow and efficient use of resources. However, it is essential to monitor these ratios over time to identify any potential issues in inventory management that may arise.
Peer comparison
Mar 31, 2025
Mar 31, 2025