McKesson Corporation (MCK)
Gross profit margin
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 13,323,000 | 12,584,000 | 12,358,000 | 13,130,000 | 12,148,000 |
| Revenue | US$ in thousands | 359,051,000 | 308,951,000 | 276,711,000 | 263,966,000 | 238,228,000 |
| Gross profit margin | 3.71% | 4.07% | 4.47% | 4.97% | 5.10% |
March 31, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $13,323,000K ÷ $359,051,000K
= 3.71%
Based on the provided data, McKesson Corporation's gross profit margin has experienced a declining trend over the past five years. The gross profit margin decreased from 5.10% as of March 31, 2021, to 3.71% as of March 31, 2025.
This downward trend indicates that the company's cost of goods sold as a percentage of net sales has been increasing relative to its gross profit, which can be a concern for investors and stakeholders. A declining gross profit margin may suggest pricing pressures, higher production costs, or inefficiencies in the company's operations.
McKesson Corporation may need to closely evaluate its cost structure, pricing strategies, and operational efficiency to reverse this trend and improve its gross profit margin in order to enhance profitability and shareholder value in the future.
Peer comparison
Mar 31, 2025