McKesson Corporation (MCK)
Quick 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 | 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 | — | — | — | — | — |
| Receivables | US$ in thousands | 21,622,000 | 23,066,000 | 22,494,000 | 21,860,000 | 19,410,000 | 20,537,000 | 20,109,000 | 19,900,000 | 18,583,000 | 18,355,000 | 20,140,000 | 20,198,000 | 19,181,000 | 18,877,000 | 19,285,000 | 17,768,000 | 19,950,000 | 18,831,000 | 18,984,000 | 19,287,000 |
| 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 |
| Quick ratio | 0.51 | 0.49 | 0.49 | 0.51 | 0.51 | 0.49 | 0.48 | 0.47 | 0.46 | 0.45 | 0.49 | 0.52 | 0.58 | 0.54 | 0.53 | 0.53 | 0.56 | 0.52 | 0.55 | 0.56 |
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 has shown some fluctuation over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
Looking at the data, the quick ratio has generally been within the range of 0.45 to 0.58 over the last few years. It appears to have peaked at 0.58 in the first quarter of 2021 before declining and stabilizing around 0.49 to 0.51 in recent quarters.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations if they all came due at once. McKesson's quick ratio hovering around 0.50 means that the company may have to rely on other sources of liquidity, such as borrowing or selling assets, to meet its short-term liabilities.
It is important for investors and stakeholders to monitor the company's quick ratio trends over time to assess its liquidity position and ability to weather potential financial challenges.
Peer comparison
Mar 31, 2024