McKesson Corporation (MCK)
Return on assets (ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,002,000 | 3,560,000 | 1,114,000 | -4,539,000 | 900,000 |
| Total assets | US$ in thousands | 67,443,000 | 62,320,000 | 63,298,000 | 65,015,000 | 61,247,000 |
| ROA | 4.45% | 5.71% | 1.76% | -6.98% | 1.47% |
March 31, 2024 calculation
ROA = Net income ÷ Total assets
= $3,002,000K ÷ $67,443,000K
= 4.45%
McKesson Corporation's return on assets (ROA) has fluctuated over the past five years. In the most recent fiscal year ending on March 31, 2024, the company's ROA was 4.45%, representing a decrease from the previous year's 5.71%. This indicates that the company generated 4.45 cents in profit for every dollar of assets it owns.
Looking back, in fiscal year 2022, McKesson's ROA stood at 1.76%, which showed an improvement from the negative ROA of -6.98% in fiscal year 2021. The negative ROA in 2021 suggests that the company experienced financial difficulties and was not effectively utilizing its assets to generate profits.
In comparison, the 1.47% ROA in fiscal year 2020 indicates a moderate profitability level. It is essential for McKesson Corporation to continue monitoring and managing its assets efficiently to sustain or improve its ROA over the coming years, ensuring that it maximizes profitability from its asset base.
Peer comparison
Mar 31, 2024