McKesson Corporation (MCK)

Financial leverage 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
Total assets	US$ in thousands	67,443,000	66,512,000	66,091,000	64,096,000	62,320,000	62,690,000	63,081,000	62,295,000	63,298,000	63,708,000	63,601,000	62,894,000	65,015,000	61,845,000	61,558,000	57,666,000	61,247,000	60,873,000	58,994,000	61,680,000
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
Financial leverage ratio		—	—	—	—	—	—	—	—	—	—	—	—	—	—	10.45	10.59	12.03	9.86	9.10	7.83

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $67,443,000K ÷ $-1,971,000K
= —

The financial leverage ratio of McKesson Corporation has shown some fluctuations over the past several quarters. The ratio has ranged from 7.83 to 12.03 during the period from June 2019 to March 2020. In recent quarters, the ratio has been trending downwards, indicating a decrease in the company's reliance on debt to finance its operations and investments. However, the ratio spiked to 10.59 in December 2020 before decreasing to 10.45 in September 2020.

Overall, the average financial leverage ratio for McKesson Corporation over the past few quarters suggests that the company has maintained a moderate level of financial leverage. A lower financial leverage ratio indicates a lower level of debt relative to equity, which can be a positive sign for investors as it signifies a lower financial risk. Additionally, it shows that the company has a stronger equity position to support its operations and growth initiatives.