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.