McKesson Corporation (MCK)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,691,000 | 4,583,000 | 4,678,000 | 3,532,000 | 6,278,000 |
| Short-term investments | US$ in thousands | — | — | — | 31,000 | — |
| Total current liabilities | US$ in thousands | 61,604,000 | 52,357,000 | 47,957,000 | 48,466,000 | 44,103,000 |
| Cash ratio | 0.09 | 0.09 | 0.10 | 0.07 | 0.14 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,691,000K
+ $—K)
÷ $61,604,000K
= 0.09
The cash ratio of McKesson Corporation has shown some fluctuation over the past five years. As of March 31, 2021, the cash ratio was 0.14, indicating that the company had $0.14 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased to 0.07 by March 31, 2022, reflecting a decrease in the company's liquidity position.
Subsequently, the cash ratio improved slightly to 0.10 by March 31, 2023, before declining again to 0.09 by both March 31, 2024, and March 31, 2025. This downward trend suggests that McKesson Corporation may be facing challenges in maintaining sufficient cash reserves to cover its short-term obligations.
Overall, the cash ratio indicates the company's ability to meet its immediate financial obligations with cash on hand. The decreasing trend in the cash ratio over the past few years may raise concerns about McKesson Corporation's liquidity position and its ability to manage short-term financial risks effectively.
Peer comparison
Mar 31, 2025