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.