McKesson Corporation (MCK)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,883,000 | 4,713,000 | 1,928,000 | -5,017,000 | 1,167,000 |
| Long-term debt | US$ in thousands | — | — | — | 6,406,000 | 6,335,000 |
| Total stockholders’ equity | US$ in thousands | -1,971,000 | -1,857,000 | -2,272,000 | -21,000 | 5,092,000 |
| Return on total capital | — | — | — | -78.57% | 10.21% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,883,000K ÷ ($—K + $-1,971,000K)
= —
The return on total capital for McKesson Corporation has shown significant fluctuations over the past five years. In the fiscal year ending March 31, 2020, the return on total capital was at a positive 10.21%, indicating that the company generated a return on the total capital invested in the business. However, this trend reversed drastically in the following fiscal year ending March 31, 2021, when the return on total capital plummeted to -78.57%. This sharp decline suggests that the company's capital utilization and efficiency in generating returns deteriorated substantially during that period.
Unfortunately, the return on total capital data for the subsequent years, ending in March 31, 2022 and March 31, 2023, is not available and denoted by dashes. This lack of information hinders a comprehensive assessment of the company's recent performance in terms of return on total capital. It is essential for stakeholders to have access to this data to evaluate the company's capital efficiency and profitability.
Overall, the significant decline in return on total capital from a positive figure to a negative one highlights the importance of monitoring and analyzing this key financial metric to assess McKesson Corporation's ability to generate returns on the capital invested in its operations.
Peer comparison
Mar 31, 2024