McKesson Corporation (MCK)
Total asset 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 |
| Total assets | US$ in thousands | 67,443,000 | 62,320,000 | 63,298,000 | 65,015,000 | 61,247,000 |
| Total asset turnover | 4.58 | 4.44 | 4.17 | 3.66 | 3.77 |
March 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $308,734,000K ÷ $67,443,000K
= 4.58
The total asset turnover of McKesson Corporation has shown a consistent upward trend over the past five years, indicating an improvement in the company's efficiency in generating sales revenue relative to its total assets. The ratio has increased from 3.77 in 2020 to 4.58 in 2024, reflecting an enhanced utilization of assets to drive sales. This suggests that McKesson has been able to effectively deploy its assets to generate more revenue, which is a positive sign of operational efficiency and effectiveness in the management of its asset base. The increasing trend in total asset turnover indicates that McKesson has been able to optimize its asset utilization, potentially leading to better profitability and returns for the company.
Peer comparison
Mar 31, 2024