McKesson Corporation (MCK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,583,000 | 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 | 4,015,000 | 2,065,000 | 1,356,000 | 1,947,000 |
| Short-term investments | US$ in thousands | 240,000 | 213,000 | 222,000 | 237,000 | 237,000 | 253,000 | 252,000 | — | 346,000 | 358,000 | 357,000 | — | 269,000 | 267,000 | 235,000 | — | — | — | — | — |
| 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 |
| Cash ratio | 0.09 | 0.04 | 0.05 | 0.06 | 0.10 | 0.06 | 0.07 | 0.05 | 0.08 | 0.07 | 0.05 | 0.06 | 0.15 | 0.09 | 0.08 | 0.07 | 0.09 | 0.05 | 0.04 | 0.05 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,583,000K
+ $240,000K)
÷ $52,357,000K
= 0.09
The cash ratio of McKesson Corporation has shown some fluctuation over the past few quarters, ranging from 0.04 to 0.15. 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 ability to cover these obligations.
In the most recent quarter, ending March 31, 2024, McKesson Corporation's cash ratio was 0.09, suggesting that the company has $0.09 in cash and cash equivalents for every $1 of its short-term liabilities. This ratio has improved compared to the previous quarter, where it was 0.04.
Looking back over the past few quarters, the company's cash ratio has generally been within the range of 0.05 to 0.10, indicating a moderate level of liquidity. It's worth noting that the cash ratio was significantly higher at 0.15 in March 2021, suggesting a stronger liquidity position at that time.
Overall, the cash ratio trend for McKesson Corporation indicates that the company has maintained a reasonable level of liquidity to cover its short-term obligations, though there have been fluctuations over time. Investors and analysts may continue to monitor this ratio to assess the company's liquidity and financial health.
Peer comparison
Mar 31, 2024