McKesson Corporation (MCK)

Gross profit margin

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Gross profit	US$ in thousands	12,828,000	12,358,000	13,130,000	12,148,000	12,023,000
Revenue	US$ in thousands	308,734,000	276,496,000	263,638,000	238,047,000	230,835,000
Gross profit margin		4.16%	4.47%	4.98%	5.10%	5.21%

March 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $12,828,000K ÷ $308,734,000K
= 4.16%

The gross profit margin of McKesson Corporation has shown a declining trend over the past five years, decreasing from 5.21% in March 2020 to 4.16% in March 2024. This indicates that the company's ability to generate profitable sales revenue has weakened over this period. The downward trajectory suggests potential challenges in managing production costs, pricing strategies, or a decrease in the efficiency of the company's operations. Further investigation into the reasons behind this decline would be necessary to identify areas for improvement in order to enhance profitability.