McKesson Corporation (MCK)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,583,000 | 4,678,000 | 3,532,000 | 6,278,000 | 4,015,000 |
| Short-term investments | US$ in thousands | 240,000 | 237,000 | 346,000 | 269,000 | 170,000 |
| Receivables | US$ in thousands | 21,622,000 | 19,410,000 | 18,583,000 | 19,181,000 | 19,950,000 |
| Total current liabilities | US$ in thousands | 52,357,000 | 47,957,000 | 48,466,000 | 44,103,000 | 42,624,000 |
| Quick ratio | 0.51 | 0.51 | 0.46 | 0.58 | 0.57 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,583,000K
+ $240,000K
+ $21,622,000K)
÷ $52,357,000K
= 0.51
The quick ratio of McKesson Corporation over the past five years has shown some fluctuation, ranging from 0.46 to 0.58. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities. In the case of McKesson Corporation, the quick ratio has been consistently below 1, which suggests that the company may have limitations in meeting its short-term obligations with its readily available liquid assets. This trend indicates that McKesson Corporation may need to carefully manage its liquidity position to ensure its financial stability in the short term.
Peer comparison
Mar 31, 2024