McKesson Corporation (MCK)
Payables 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 |
| Payables | US$ in thousands | 55,330,000 | 49,689,000 | 53,317,000 | 51,704,000 | 47,097,000 | 46,699,000 | 46,795,000 | 43,982,000 | 42,490,000 | 42,238,000 | 41,003,000 | 39,708,000 | 38,086,000 | 37,183,000 | 38,922,000 | 38,389,000 | 38,975,000 | 36,509,000 | 36,255,000 | 33,209,000 |
| 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 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $345,924,000K ÷ $55,330,000K
= 6.25
The payables turnover ratio of McKesson Corporation has shown some fluctuations over the reporting periods, ranging from a low of 5.80 to a high of 6.67. The ratio indicates the number of times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio suggests that the company is efficiently managing its accounts payable by paying off its suppliers more frequently.
In the context of McKesson Corporation, the payables turnover ratio has generally remained within a narrow range, fluctuating moderately. This indicates a relatively stable and consistent approach to managing its accounts payable over the reporting periods.
Overall, a payables turnover ratio in the range of 5.80 to 6.67 suggests that McKesson Corporation is effectively managing its accounts payable and maintaining a balance between timely payments and cash flow optimization. Further analysis of the company's payment policies and vendor relationships may provide additional insights into its working capital management strategies.
Peer comparison
Mar 31, 2025