McKesson Corporation (MCK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,883,000 | 3,644,000 | 4,486,000 | 4,800,000 | 4,713,000 | 4,392,000 | 3,187,000 | 2,379,000 | 1,928,000 | 2,300,000 | -5,343,000 | -5,132,000 | -5,039,000 | -5,193,000 | 2,538,000 | 2,509,000 | 2,489,000 | 1,051,000 | 1,374,000 | 1,437,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | 5,518,000 | 5,946,000 | — | 6,406,000 | — | 5,848,000 | 6,395,000 | 6,335,000 | 6,734,000 | 7,342,000 | 7,382,000 |
| Total stockholders’ equity | US$ in thousands | -1,971,000 | -2,053,000 | -1,828,000 | -1,602,000 | -1,857,000 | -2,455,000 | -1,767,000 | -2,004,000 | -2,272,000 | -1,274,000 | -571,000 | -529,000 | -21,000 | -477,000 | 5,890,000 | 5,446,000 | 5,092,000 | 6,174,000 | 6,482,000 | 7,874,000 |
| Return on total capital | — | — | — | — | — | — | — | — | — | 54.19% | -99.40% | — | -78.92% | — | 21.62% | 21.19% | 21.78% | 8.14% | 9.94% | 9.42% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 few quarters. In the most recent period, the return on total capital was not available. However, looking at historical data, the return on total capital was notably high at 54.19% in the fourth quarter of 2021, indicating efficient utilization of capital to generate profits.
On the other hand, there were periods of substantial decline in return on total capital, such as -99.40% and -78.92% in the first and third quarters of 2021, respectively. These figures suggest that during those periods, the company's profitability suffered as a result of issues related to capital management or operational performance.
Overall, the return on total capital for McKesson Corporation has been volatile, with fluctuations ranging from negative figures to double-digit positive returns. Investors and analysts may need to closely monitor the company's capital allocation strategies and operational efficiency to better understand the drivers behind these fluctuations in return on total capital.
Peer comparison
Mar 31, 2024