McKesson Corporation (MCK)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 308,743,000 | 301,155,000 | 290,742,000 | 283,832,000 | 276,496,000 | 273,874,000 | 272,026,000 | 268,122,000 | 263,687,000 | 256,729,000 | 250,755,000 | 245,223,000 | 238,228,000 | 237,621,000 | 234,203,000 | 231,016,000 | 231,082,000 | 224,976,000 | 222,003,000 | 217,457,000 |
| Total current assets | US$ in thousands | 47,970,000 | 47,640,000 | 47,531,000 | 45,539,000 | 44,292,000 | 44,657,000 | 46,448,000 | 45,383,000 | 46,231,000 | 46,498,000 | 45,580,000 | 43,350,000 | 45,382,000 | 42,368,000 | 42,345,000 | 38,682,000 | 42,222,000 | 39,390,000 | 37,353,000 | 38,428,000 |
| Total current liabilities | US$ in thousands | 52,357,000 | 51,661,000 | 51,147,000 | 48,422,000 | 47,957,000 | 48,006,000 | 48,357,000 | 47,201,000 | 48,466,000 | 47,452,000 | 46,075,000 | 43,835,000 | 44,103,000 | 41,930,000 | 42,724,000 | 38,600,000 | 42,624,000 | 40,055,000 | 37,145,000 | 37,952,000 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | 186.26 | 542.51 | — | 2,817.27 | — | — | 1,067.32 | 456.84 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $308,743,000K ÷ ($47,970,000K – $52,357,000K)
= —
The working capital turnover ratio for McKesson Corporation has shown significant fluctuations over the past few quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In the most recent quarter, the working capital turnover ratio was not available, indicating a lack of data. However, in previous periods, the ratio varied greatly. In December 2022, the ratio was 542.51, suggesting that McKesson was effectively utilizing its working capital to generate sales. This high ratio indicates that the company was able to generate a high level of sales revenue relative to its working capital.
On the other hand, in March 2021 and June 2020, the working capital turnover ratios were much lower at 186.26 and 456.84, respectively. This could indicate inefficiencies in managing working capital during those periods.
The working capital turnover ratio for June 2020 was unusually high at 2,817.27, which could be an outlier or could indicate a period of exceptionally efficient working capital utilization.
Overall, the trend in the working capital turnover ratio for McKesson Corporation has been variable, indicating fluctuations in the efficiency of working capital management in generating sales revenue. A consistent and stable working capital turnover ratio over time would be indicative of good working capital management practices.
Peer comparison
Mar 31, 2024
See also:
McKesson Corporation Working Capital Turnover (Quarterly Data)