McKesson Corporation (MCK)
Payables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 345,728,000 | 296,367,000 | 264,353,000 | 250,836,000 | 226,080,000 |
| Payables | US$ in thousands | 55,330,000 | 47,097,000 | 42,490,000 | 38,086,000 | 38,975,000 |
| Payables turnover | 6.25 | 6.29 | 6.22 | 6.59 | 5.80 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $345,728,000K ÷ $55,330,000K
= 6.25
The payables turnover ratio for McKesson Corporation has shown a generally improving trend over the past five years. The ratio increased from 5.80 in March 2021 to 6.25 in March 2025, with fluctuations in between. This indicates that the company is paying its suppliers more frequently within each period, which can be seen as a positive sign of efficient management of its accounts payable. However, it's important to monitor any significant changes in this ratio over time to ensure the company's liquidity and supplier relationships remain healthy.
Peer comparison
Mar 31, 2025
Company name
Symbol
Payables turnover
McKesson Corporation
MCK
6.25
Cardinal Health Inc
CAH
6.91
Cencora Inc.
COR
5.58