McKesson Corporation (MCK)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 305,530,000 | 298,462,000 | 287,451,000 | 280,222,000 | 272,946,000 | 271,934,000 | 271,016,000 | 267,926,000 | 263,887,000 | 261,588,000 | 260,977,000 | 253,011,000 | 244,110,000 | 243,662,000 | 232,306,000 | 229,178,000 | 229,027,000 | 212,990,000 | 210,038,000 | 205,597,000 |
| Payables | US$ in thousands | 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 | 37,195,000 | 32,744,000 | 32,560,000 | 34,021,000 |
| 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 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $305,530,000K ÷ $47,097,000K
= 6.49
McKesson Corporation's payables turnover ratio has been relatively stable over the past few quarters, ranging from 6.04 to 7.04. This indicates that the company is able to efficiently manage its accounts payable, on average, around 6 to 7 times per year. A higher payables turnover ratio generally suggests that the company is paying its suppliers more frequently, which may signify good cash management practices or strong supplier relationships.
In McKesson's case, the payables turnover ratio has shown slight fluctuations but has generally been consistent, with no significant upward or downward trend. This stability indicates that the company's payment policies have remained largely unchanged, and they have been consistent in managing their trade payables turnover efficiency.
Overall, a payables turnover ratio of around 6 to 7 times per year suggests that McKesson is efficiently managing its accounts payable, paying its suppliers in a timely manner, and maintaining good working relationships with them.
Peer comparison
Mar 31, 2024