McKesson Corporation (MCK)
Solvency ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 10.45 | 10.59 |
The solvency ratios of McKesson Corporation, based on the provided data, show a strong financial position with consistently low levels of debt relative to assets, capital, and equity.
The Debt-to-assets ratio has remained at 0.00% across all reporting periods, indicating that the company has not relied heavily on debt to finance its operations and investments. This implies a low level of financial risk and a strong ability to cover obligations using its assets.
Similarly, both the Debt-to-capital ratio and Debt-to-equity ratio are reported as "—", suggesting that the company has either no debt or very minimal debt compared to its capital and equity. This indicates a conservative capital structure and a reduced likelihood of financial distress.
The Financial leverage ratio, on the other hand, shows values of around 10.45 to 10.59 for the periods provided. While this ratio is relatively high, it may be attributed to various factors such as operating leases or other non-debt liabilities. This could signify a degree of operating leverage, but without the specific breakdown of components, a more in-depth analysis is required to fully assess the company's leverage position.
In conclusion, based on the solvency ratios provided, McKesson Corporation appears to be in a healthy financial position with low debt levels and a prudent approach to capital structure management.
Coverage ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.53 | 14.35 | 14.05 | 16.78 | 18.31 | 17.43 | 18.49 | 19.57 | 19.67 | 21.50 | 18.25 | 14.63 | 11.83 | 13.35 | -25.06 | -23.11 | -22.01 | -20.31 | 12.73 | 5.43 |
Based on the provided data, the interest coverage ratio of McKesson Corporation has shown fluctuations over time. As of March 31, 2025, the interest coverage ratio stands at 11.53.
The interest coverage ratio is an important financial metric that indicates the company's ability to cover its interest obligations with its operating income. A higher interest coverage ratio is generally preferred as it suggests that the company is in a better position to meet its interest payments.
McKesson's interest coverage ratio has experienced both positive and negative values during the period analyzed. Negative values, such as those seen in December 2020, indicate that the company's operating income was insufficient to cover its interest expenses. On the other hand, the positive values, like the one in December 2021, suggest an improvement in the company's ability to meet its interest obligations.
Overall, it is essential for investors and creditors to closely monitor the interest coverage ratio to assess McKesson's financial health and its capacity to service its debt obligations. The trend in the interest coverage ratio over time can provide valuable insights into the company's financial performance and risk profile.