McKesson Corporation (MCK)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 67,443,000 | 66,512,000 | 66,091,000 | 64,096,000 | 62,320,000 | 62,690,000 | 63,081,000 | 62,295,000 | 63,298,000 | 63,708,000 | 63,601,000 | 62,894,000 | 65,015,000 | 61,845,000 | 61,558,000 | 57,666,000 | 61,247,000 | 60,873,000 | 58,994,000 | 61,680,000 |
| Operating ROA | 5.80% | 5.52% | 6.46% | 6.93% | 7.03% | 6.43% | 4.90% | 4.02% | 3.22% | 3.79% | -8.25% | -8.19% | -7.75% | -8.38% | 4.13% | 4.39% | 4.06% | 1.73% | 2.33% | 2.33% |
March 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,909,000K ÷ $67,443,000K
= 5.80%
The operating return on assets (ROA) of McKesson Corporation has shown fluctuations over the past few quarters. The trend indicates that the company's ability to generate operating income from its assets has varied.
McKesson's operating ROA was relatively stable between March 2021 and June 2022, ranging from 3.22% to 7.03%, indicating a consistent performance in utilizing its assets to generate operating profits during this period.
However, starting from September 2022, there was a decline in the operating ROA, reaching a low point of -8.25% in September 2021. This significant negative figure suggests that the company's operating income was insufficient to cover its operating assets during that quarter.
In the most recent quarters of March 2023 to March 2024, the operating ROA has improved from the negative range to positive figures, but it hasn't reached the levels seen in the earlier stable period.
Overall, the analysis of McKesson Corporation's operating ROA reveals a fluctuating pattern, indicating varying levels of efficiency in generating operating income from its assets. It will be essential for the company to focus on improving this ratio to ensure sustainable profitability and operational effectiveness in the future.
Peer comparison
Mar 31, 2024