McKesson Corporation (MCK)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 6.25 | 6.67 | 5.95 | 5.82 | 6.29 | 6.19 | 5.96 | 6.18 | 6.22 | 6.19 | 6.32 | 6.43 | 6.59 | 6.56 | 6.12 | 6.06 | 5.80 | 6.17 | 6.13 | 6.60 | |
| Number of days of payables | days | 58.38 | 54.69 | 61.32 | 62.67 | 58.03 | 58.94 | 61.27 | 59.09 | 58.67 | 59.00 | 57.75 | 56.76 | 55.42 | 55.65 | 59.65 | 60.20 | 62.92 | 59.11 | 59.57 | 55.33 |
March 31, 2025 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.25
= 58.38
The number of days of payables for McKesson Corporation has shown some fluctuations over the period from June 30, 2020, to March 31, 2025. The number of days of payables represents the average number of days it takes for McKesson to pay its suppliers.
From June 30, 2020, to December 31, 2021, the number of days of payables ranged between 55 and 60 days, indicating that McKesson was able to manage its payable obligations within a relatively stable timeframe. However, from March 31, 2022, to June 30, 2024, the number of days of payables increased gradually, reaching a peak of around 62 days by June 30, 2024.
The increase in the number of days of payables may suggest that McKesson was taking longer to pay its suppliers during this period, which could be indicative of potential liquidity challenges or changes in supplier relationships. However, the number of days of payables decreased slightly by December 31, 2024, to around 55 days, indicating a potential improvement in payment practices.
Overall, monitoring the trend in the number of days of payables can provide insights into McKesson's cash flow management, supplier relationships, and financial health. A higher number of days of payables may raise concerns about the company's ability to pay its obligations on time, while a lower number may indicate efficient working capital management.
Peer comparison
Mar 31, 2025
See also:
McKesson Corporation Average Payables Payment Period (Quarterly Data)