McKesson Corporation (MCK)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 305,530,000 | 272,946,000 | 263,887,000 | 244,086,000 | 229,386,000 |
| Payables | US$ in thousands | 47,097,000 | 42,490,000 | 38,086,000 | 38,975,000 | 37,195,000 |
| Payables turnover | 6.49 | 6.42 | 6.93 | 6.26 | 6.17 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $305,530,000K ÷ $47,097,000K
= 6.49
The payables turnover ratio for McKesson Corporation has shown a consistent trend over the past five years. The ratio has ranged from 6.17 to 6.93, with the most recent figure being 6.49 as of March 31, 2024. This indicates that, on average, McKesson is able to pay off its accounts payable approximately 6.49 times within a year.
A higher payables turnover ratio generally suggests that a company is managing its accounts payable more efficiently, as it is taking fewer days to pay off its suppliers. In the case of McKesson, the relatively stable and moderately high payables turnover ratio indicates that the company has been effectively managing its supplier payments over the years.
Overall, the consistent payables turnover ratio for McKesson Corporation reflects a sound financial management strategy when it comes to managing its payables and cash flow.
Peer comparison
Mar 31, 2024