McKesson Corporation (MCK)
Profitability ratios
Return on sales
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 3.66% | 3.76% | 3.88% | 4.03% | 4.11% | 4.08% | 4.24% | 4.35% | 4.47% | 4.60% | 4.73% | 4.89% | 4.97% | 5.10% | 5.11% | 5.09% | 5.10% | 5.13% | 5.15% | 5.17% |
| Operating profit margin | 1.24% | 1.23% | 1.11% | 1.28% | 1.32% | 1.22% | 1.47% | 1.56% | 1.58% | 1.55% | 1.21% | 1.01% | 0.85% | 0.94% | -2.09% | -2.10% | -2.12% | -2.18% | 1.08% | 1.10% |
| Pretax margin | 1.21% | 1.16% | 1.03% | 1.21% | 1.23% | 1.18% | 1.51% | 1.66% | 1.67% | 1.59% | 1.17% | 0.88% | 0.73% | 0.90% | -2.12% | -2.09% | -2.11% | -2.05% | 1.19% | 0.51% |
| Net profit margin | 0.92% | 0.82% | 0.77% | 0.94% | 0.97% | 0.99% | 1.20% | 1.32% | 1.29% | 1.15% | 0.76% | 0.52% | 0.42% | 0.55% | -1.92% | -1.83% | -1.91% | -1.76% | 0.95% | 0.40% |
McKesson Corporation's profitability ratios have shown a downward trend over the last few years.
- The Gross Profit Margin declined from 5.17% on June 30, 2020, to 3.66% on March 31, 2025. This indicates a decrease in the percentage of revenue retained as gross profit over time.
- The Operating Profit Margin improved from negative figures in December 31, 2020, to 1.24% on March 31, 2025. This suggests better operational efficiency and cost management leading to positive operating profits.
- The Pretax Margin also saw an improvement from negative values in 2020 to 1.21% on March 31, 2025. This signifies an increase in profitability before accounting for taxes.
- The Net Profit Margin similarly increased from negative percentages to 0.92% on March 31, 2025. This demonstrates that the company's profitability after all expenses, including taxes, has been recovering.
Overall, while the company experienced margin contraction, the positive directional movement in operating, pretax, and net profit margins since 2020 suggests improvements in operational efficiency and financial performance despite the challenging business environment.
Return on investment
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.93% | 5.96% | 5.04% | 5.62% | 6.03% | 5.52% | 6.46% | 6.93% | 7.03% | 6.77% | 5.23% | 4.36% | 3.55% | 3.79% | -8.25% | -8.19% | -7.75% | -8.38% | 4.13% | 4.39% |
| Return on assets (ROA) | 4.39% | 3.98% | 3.50% | 4.13% | 4.45% | 4.51% | 5.28% | 5.85% | 5.71% | 5.01% | 3.26% | 2.24% | 1.76% | 2.22% | -7.56% | -7.15% | -6.98% | -6.77% | 3.62% | 1.60% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 51.66% | 25.23% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 37.83% | 16.91% |
McKesson Corporation's profitability ratios demonstrate fluctuations over the period under review. The Operating return on assets (Operating ROA) increased from June 30, 2020, to March 31, 2025, with a peak of 7.03% on March 31, 2023. Although there were some fluctuations, the trend shows an overall improvement in profitability as indicated by the increasing Operating ROA.
Similarly, the Return on assets (ROA) also showed an upward trend over the period, with the highest value of 5.93% on March 31, 2025. This indicates that the company's profitability in generating earnings from its assets improved gradually during the period.
The Return on total capital and Return on equity (ROE) data were not provided for most of the periods, making it challenging to analyze the company's efficiency in generating returns based on total capital and equity.
Overall, the improvement in the profitability ratios suggests that McKesson Corporation managed to enhance its operational efficiency and generate better returns from its assets over the reviewed period. However, a more detailed analysis incorporating all profitability ratios would provide a more comprehensive understanding of the company's financial performance.