McKesson Corporation (MCK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 4.15% | 4.09% | 4.24% | 4.35% | 4.47% | 4.60% | 4.73% | 4.89% | 4.98% | 5.11% | 5.12% | 5.09% | 5.10% | 5.13% | 5.15% | 5.17% | 5.20% | 5.28% | 5.33% | 5.41% |
| 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% |
| Pretax margin | 1.18% | 1.13% | 1.45% | 1.60% | 1.61% | 1.53% | 1.10% | 0.82% | 0.66% | 0.82% | -2.21% | -2.18% | -2.21% | -2.14% | 1.10% | 0.41% | 0.40% | -0.41% | -0.25% | 0.46% |
| Net profit margin | 0.97% | 1.00% | 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% | 0.39% | -0.41% | -0.29% | 0.27% |
McKesson Corporation's profitability ratios have shown some fluctuations over the past few quarters. The gross profit margin has been in a declining trend, starting at 5.41% in September 2019 and decreasing to 4.15% in March 2024. This indicates a decrease in the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin has also shown variability, with a peak of 1.57% in June 2023 but dropping to 0.77% in March 2022. This suggests fluctuations in the company's ability to control operating expenses and generate profits from its core business activities.
Similarly, the pretax margin and net profit margin have also shown fluctuations over the quarters. The pretax margin reached a high of 1.60% in June 2023 but decreased to 0.40% in March 2020. The net profit margin, which takes into account all expenses including taxes, has also shown variability, with a high of 1.32% in March 2024 and a low of -1.92% in December 2021.
Overall, McKesson Corporation's profitability ratios indicate some instability in its ability to generate profits over the analyzed periods, likely influenced by factors such as changes in revenue, costs, and overall business performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 1.47% | -1.51% | -1.07% | 0.96% |
| Return on total capital | — | — | — | — | — | — | — | — | — | 54.19% | -99.40% | — | -78.92% | — | 21.62% | 21.19% | 21.78% | 8.14% | 9.94% | 9.42% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 37.83% | 16.91% | 17.67% | -14.85% | -9.78% | 7.56% |
McKesson Corporation's profitability ratios over the recent quarters reflect fluctuations in profitability performance. The Operating return on assets (Operating ROA) ranged from 3.22% to 7.03%, showing variability in operational efficiency in generating profits from its assets. Return on assets (ROA) also displayed variation, ranging from -1.51% to 5.85%, indicating the company's ability to generate profits relative to its total assets.
Return on total capital was not available for all periods, but it showed significant fluctuations, reaching 54.19% in one quarter and dropping to -99.40% in another, suggesting inconsistent performance in utilizing total capital efficiently to generate returns. Return on equity (ROE) varied from -14.85% to 37.83%, indicating fluctuations in shareholder value generated by the company.
Overall, while the Operating ROA and ROA ratios demonstrate some stability, the Return on total capital and ROE ratios exhibit more pronounced fluctuations. This indicates that McKesson Corporation's profitability is impacted by various factors that influence its operational efficiency, asset utilization, and shareholder value creation. Monitoring these ratios over time can provide insights into the company's performance and financial health.