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.