McKesson Corporation (MCK)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		—	—	—	—	—	—	—	—	—	—	—	—	—	—	0.99	1.17	1.24	1.09	1.13	0.94

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $-1,971,000K
= —

The debt-to-equity ratio for McKesson Corporation has been relatively stable over the past few years, ranging from 0.94 to 1.24. This ratio calculates the proportion of debt used to finance the company's assets compared to shareholder equity. A ratio above 1 indicates that the company is relying more on debt financing than equity, which can be a sign of higher financial risk.

The ratio increased from 0.94 in September 2019 to 1.24 in June 2020, before fluctuating between 1.09 and 1.17 until March 2021. From March 2021 to March 2022, the ratio decreased to 0.99, indicating a decrease in debt relative to equity. However, it increased again to 1.13 in December 2022 and reached 1.24 in June 2023, the highest point in the period covered.

Overall, the debt-to-equity ratio suggests that McKesson Corporation has been managing its debt levels effectively, but it is essential to monitor any significant changes in the ratio to assess the company's financial health and risk profile.