McKesson Corporation (MCK)
Receivables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 359,051,000 | 308,951,000 | 276,711,000 | 263,966,000 | 238,228,000 |
| Receivables | US$ in thousands | 25,643,000 | 21,622,000 | 19,410,000 | 18,583,000 | 19,181,000 |
| Receivables turnover | 14.00 | 14.29 | 14.26 | 14.20 | 12.42 |
March 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $359,051,000K ÷ $25,643,000K
= 14.00
McKesson Corporation's receivables turnover has shown a general increasing trend over the past five years, rising from 12.42 in March 2021 to 14.00 in March 2025. This indicates that the company has been able to collect its accounts receivable more frequently and efficiently over time. The consistent improvement in receivables turnover suggests that McKesson has been managing its credit policies effectively and might have been successful in accelerating its cash inflows from sales. A higher receivables turnover ratio also signifies that the company is converting its credit sales into cash more rapidly and efficiently, which is a positive indicator of its liquidity and operational efficiency.
Peer comparison
Mar 31, 2025