McKesson Corporation (MCK)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	3,909,000	3,673,000	4,272,000	4,445,000	4,381,000	4,034,000	3,091,000	2,506,000	2,038,000	2,415,000	-5,245,000	-5,150,000	-5,040,000	-5,181,000	2,541,000	2,533,000	2,489,000	1,051,000	1,374,000	1,437,000
Revenue (ttm)	US$ in thousands	308,743,000	301,155,000	290,742,000	283,832,000	276,496,000	273,874,000	272,026,000	268,122,000	263,687,000	256,729,000	250,755,000	245,223,000	238,228,000	237,621,000	234,203,000	231,016,000	231,082,000	224,976,000	222,003,000	217,457,000
Operating profit margin		1.27%	1.22%	1.47%	1.57%	1.58%	1.47%	1.14%	0.93%	0.77%	0.94%	-2.09%	-2.10%	-2.12%	-2.18%	1.08%	1.10%	1.08%	0.47%	0.62%	0.66%

March 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $3,909,000K ÷ $308,743,000K
= 1.27%

The operating profit margin of McKesson Corporation has shown fluctuating trends over the recent quarters. The ratio reflects the company's ability to generate profits from its core operations after deducting operating expenses.

In the most recent quarter (March 31, 2024), the operating profit margin stood at 1.27%, indicating that the company generated $0.0127 in operating profit for every dollar of sales. This marked a slight increase compared to the previous quarter (December 31, 2023) where the margin was 1.22%.

Looking further back, there was a notable uptick in the operating profit margin in the September 30, 2023, quarter at 1.47%, followed by a slight dip in the June 30, 2023, quarter at 1.57%. The trend then reversed with a decrease in the margin to 1.58% in the March 31, 2023, quarter.

Comparing to the same period in the previous year, the operating profit margin has shown improvement from the negative figures reported in the three quarters ending in September 30, 2022, to positive figures in the subsequent quarters. This progression suggests that the company has focused on improving its operational efficiency and controlling costs.

Overall, while there have been fluctuations in McKesson Corporation's operating profit margin, the recent positive trends indicate a potential improvement in the company's profitability and operational performance. However, sustainability of these improvements would require continued focus on cost management and revenue growth strategies.