McKesson Corporation (MCK)
Cash ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,691,000 | 1,131,000 | 2,509,000 | 2,304,000 | 4,585,000 | 1,982,000 | 2,524,000 | 2,636,000 | 4,678,000 | 2,774,000 | 2,916,000 | 2,233,000 | 3,532,000 | 2,754,000 | 2,151,000 | 2,423,000 | 6,278,000 | 3,577,000 | 3,091,000 | 2,613,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 31,000 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 61,604,000 | 58,562,000 | 58,771,000 | 56,434,000 | 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 |
| Cash ratio | 0.09 | 0.02 | 0.04 | 0.04 | 0.09 | 0.04 | 0.05 | 0.05 | 0.10 | 0.06 | 0.06 | 0.05 | 0.07 | 0.06 | 0.05 | 0.06 | 0.14 | 0.09 | 0.07 | 0.07 |
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 fluctuations over the reporting periods provided. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
From March 31, 2021, to December 31, 2022, the cash ratio ranged between 0.05 to 0.14, showing some variability. However, overall, the cash ratio remained relatively stable during this period.
The cash ratio saw a notable increase to 0.10 as of March 31, 2023, indicating a temporary improvement in McKesson's liquidity position. Subsequently, the ratio decreased to 0.04 by December 31, 2024, signaling a potential decrease in the company's ability to cover its short-term obligations with cash on hand.
As of March 31, 2025, the cash ratio improved to 0.09, suggesting a better liquidity position compared to the previous two quarters. It is essential for the company to closely monitor its cash position and ensure it has enough liquidity to meet its short-term obligations effectively.
Peer comparison
Mar 31, 2025