McKesson Corporation (MCK)

Number of days of payables

		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
Payables turnover		6.49	6.39	6.14	6.37	6.42	6.44	6.61	6.75	6.93	7.04	6.71	6.59	6.26	6.67	6.41	6.90	6.16	6.50	6.45	6.04
Number of days of payables	days	56.26	57.11	59.42	57.29	56.82	56.69	55.22	54.09	52.68	51.88	54.44	55.38	58.28	54.69	56.96	52.89	59.28	56.11	56.58	60.40

March 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.49
= 56.26

The number of days of payables for McKesson Corporation over the past 20 quarters has shown some fluctuations. The average number of days of payables over this period is approximately 55 days. The metric has been relatively stable, with a range of around 51 to 60 days.

It is worth noting that a higher number of days of payables indicates that the company takes longer to pay its suppliers, which may signal potential liquidity or cash flow challenges. Conversely, a lower number of days of payables could suggest a more efficient use of working capital.

Overall, McKesson Corporation's number of days of payables appears to be within a reasonable range, but trend analysis and comparison to industry benchmarks would provide a more comprehensive understanding of the company's payment practices and financial health.