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.
Peer comparison
Mar 31, 2024