McKesson Corporation (MCK)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 308,734,000 | 276,496,000 | 263,638,000 | 238,047,000 | 230,835,000 |
| Receivables | US$ in thousands | 21,622,000 | 19,410,000 | 18,583,000 | 19,181,000 | 19,950,000 |
| Receivables turnover | 14.28 | 14.25 | 14.19 | 12.41 | 11.57 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $308,734,000K ÷ $21,622,000K
= 14.28
McKesson Corporation's receivables turnover has been consistently strong over the past five years, increasing gradually from 11.57 in 2020 to 14.28 in 2024. This indicates that the company is efficient in collecting payments from customers and converting its accounts receivable into cash. The upward trend in receivables turnover signifies that McKesson Corporation has been improving its credit management policies or increasing sales on cash terms, which are positive indicators of financial health. Additionally, the company's ability to quickly convert receivables into cash can help mitigate liquidity risks and enhance its overall financial performance.
Peer comparison
Mar 31, 2024