McKesson Corporation (MCK) 10-Year Financial Performance & Capital Metrics

MCK • • Industrial / General

HealthcareMedical DistributionPharmaceutical DistributionBroadline Pharmaceutical Distributors

AboutMcKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS). The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products. This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The International segment offers distribution and services to wholesale, institutional, and retail customers in 13 European countries and Canada. The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers. The RxTS segment serves biopharma and life sciences partners and patients to address medication challenges for patients throughout their journeys; connects pharmacies, providers, payers, and biopharma companies to deliver innovative access and adherence solutions; and provides third-party logistics and wholesale distribution support solutions. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.Show more

Revenue $359.05B +16.2%
EBITDA $5.01B +9.8%
Net Income $3.29B +9.8%
EPS (Diluted) 25.72 +14.9%
Gross Margin 3.48% -12.0%
EBITDA Margin 1.39% -5.5%
Operating Margin 1.22% -4.2%
Net Margin 0.92% -5.6%
ROE -
ROIC 540.64% +114.3%
Debt/Equity -
Interest Coverage 17.08 +5.7%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 29.6%
✓17 consecutive years of dividend growth
✓High quality earnings: Operating CF exceeds net income
✓Share count reduced 4.5% through buybacks
✓Efficient asset utilization: 4.8x turnover

✗Weaknesses

✗Thin 5Y average net margin of 0.3%

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y7.21%

5Y9.22%

3Y10.8%

TTM17.23%

Profit (Net Income) CAGR

10Y8.36%

5Y29.64%

3Y43.55%

TTM59.03%

EPS CAGR

10Y15.16%

5Y39.04%

3Y52.65%

TTM66.51%

ROCE

10Y Avg19.36%

5Y Avg24.14%

3Y Avg29.24%

Latest30.55%

Peer Comparison

Broadline Pharmaceutical Distributors

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
CORCencora, Inc.	68.94B	355.35	44.70	9.31%	0.48%	88.96%	4.65%	4.38
CAHCardinal Health, Inc.	50.72B	213.46	33.09	-1.87%	0.68%		3.65%
MCKMcKesson Corporation	104.19B	844.13	32.82	16.22%	1.04%		5.02%

Profit & Loss

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Sales/Revenue+	190.88B	198.53B	208.36B	214.32B	231.05B	238.23B	263.97B	276.71B	308.95B	359.05B
Revenue Growth %	0.07%	0.04%	0.05%	0.03%	0.08%	0.03%	0.11%	0.05%	0.12%	0.16%
Cost of Goods Sold+	179.94B	187.84B	197.97B	203.56B	219.65B	226.65B	251.32B	264.84B	296.75B	346.57B
COGS % of Revenue	0.94%	0.95%	0.95%	0.95%	0.95%	0.95%	0.95%	0.96%	0.96%	0.97%
Gross Profit+	10.94B	10.69B	10.39B	10.76B	11.4B	11.58B	12.65B	11.87B	12.2B	12.48B
Gross Margin %	0.06%	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%	0.04%	0.04%	0.03%
Gross Profit Growth %	0%	-0.02%	-0.03%	0.04%	0.06%	0.02%	0.09%	-0.06%	0.03%	0.02%
Operating Expenses+	7.09B	7.33B	7.47B	7.68B	8.39B	8.07B	9.93B	7.42B	8.28B	8.11B
OpEx % of Revenue	0.04%	0.04%	0.04%	0.04%	0.04%	0.03%	0.04%	0.03%	0.03%	0.02%
Selling, General & Admin	6.7B	6.99B	7.35B	7.61B	8.29B	8B	9.86B	7.33B	8.2B	8.02B
SG&A % of Revenue	0.04%	0.04%	0.04%	0.04%	0.04%	0.03%	0.04%	0.03%	0.03%	0.02%
Research & Development	392M	341M	125M	71M	96M	74M	70M	89M	77M	91M
R&D % of Revenue	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	3.85B	3.36B	2.92B	3.08B	3.01B	3.51B	2.72B	4.45B	3.93B	4.37B
Operating Margin %	0.02%	0.02%	0.01%	0.01%	0.01%	0.01%	0.01%	0.02%	0.01%	0.01%
Operating Income Growth %	0.09%	-0.13%	-0.13%	0.05%	-0.02%	0.17%	-0.22%	0.64%	-0.12%	0.11%
EBITDA+	4.74B	4.27B	3.87B	4.03B	3.93B	4.73B	3.72B	5.31B	4.56B	5.01B
EBITDA Margin %	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.01%	0.02%	0.01%	0.01%
EBITDA Growth %	0.04%	-0.1%	-0.09%	0.04%	-0.02%	0.2%	-0.21%	0.43%	-0.14%	0.1%
D&A (Non-Cash Add-back)	885M	910M	951M	949M	922M	1.22B	1B	857M	635M	636M
EBIT	3.6B	7.2B	522M	874M	1.39B	-4.82B	2.11B	4.88B	4.03B	4.62B
Net Interest Income+	-335M	-279M	-235M	-225M	-200M	-205M	-168M	-141M	-125M	-83M
Interest Income	18M	29M	48M	39M	49M	12M	10M	107M	118M	173M
Interest Expense	353M	308M	283M	264M	249M	217M	178M	248M	243M	256M
Other Income/Expense	-601M	3.53B	-2.68B	-2.47B	-1.87B	-8.54B	-795M	177M	-138M	-13M
Pretax Income+	3.25B	6.89B	239M	610M	1.14B	-5.03B	1.93B	4.63B	3.79B	4.36B
Pretax Margin %	0.02%	0.03%	0%	0%	0%	-0.02%	0.01%	0.02%	0.01%	0.01%
Income Tax+	908M	1.61B	-53M	356M	18M	-695M	636M	905M	629M	878M
Effective Tax Rate %	0.69%	0.75%	0.28%	0.06%	0.79%	0.9%	0.58%	0.77%	0.79%	0.76%
Net Income+	2.26B	5.18B	67M	34M	900M	-4.54B	1.11B	3.56B	3B	3.29B
Net Margin %	0.01%	0.03%	0%	0%	0%	-0.02%	0%	0.01%	0.01%	0.01%
Net Income Growth %	0.53%	1.3%	-0.99%	-0.49%	25.47%	-6.04%	1.25%	2.2%	-0.16%	0.1%
Net Income (Continuing)	2.34B	5.28B	292M	254M	1.13B	-4.34B	1.29B	3.73B	3.16B	3.48B
Discontinued Operations	-32M	-11M	5M	1M	-6M	-1M	-5M	-3M	0	0
Minority Interest	1.49B	1.5B	1.71B	1.59B	1.62B	1.47B	480M	367M	372M	380M
EPS (Diluted)+	9.70	22.73	0.32	0.17	4.95	-27.02	7.23	25.04	22.39	25.72
EPS Growth %	0.55%	1.34%	-0.99%	-0.47%	28.12%	-6.46%	1.27%	2.46%	-0.11%	0.15%
EPS (Basic)	9.82	22.95	0.32	0.17	4.97	-27.02	7.31	25.23	22.54	25.86
Diluted Shares Outstanding	233M	223M	209M	197.3M	182M	160.6M	154.1M	142.2M	134.1M	128.1M
Basic Shares Outstanding	230M	221M	208M	196.3M	181M	160.6M	152.3M	141.1M	133.2M	127.4M
Dividend Payout Ratio	0.11%	0.05%	3.91%	8.59%	0.33%	-	0.25%	0.08%	0.1%	0.1%

Balance Sheet

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Total Current Assets+	38.44B	36.95B	37.14B	38.47B	42.22B	45.38B	46.23B	44.29B	47.97B	55.4B
Cash & Short-Term Investments	4.05B	2.78B	2.67B	2.98B	4.01B	6.28B	3.53B	4.68B	4.58B	5.69B
Cash Only	4.05B	2.78B	2.67B	2.98B	4.01B	6.28B	3.53B	4.68B	4.58B	5.69B
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	17.98B	18.21B	17.71B	18.25B	19.95B	19.18B	18.58B	19.41B	21.62B	25.64B
Days Sales Outstanding	34.38	33.49	31.03	31.07	31.52	29.39	25.7	25.6	25.54	26.07
Inventory	15.34B	15.28B	16.31B	16.71B	16.73B	19.25B	18.7B	19.69B	21.14B	23B
Days Inventory Outstanding	31.11	29.69	30.07	29.96	27.81	30.99	27.16	27.14	26	24.22
Other Current Assets	0	0	0	0	906M	12M	4.52B	513M	626M	1.06B
Total Non-Current Assets+	18.13B	24.02B	23.25B	21.21B	19.02B	19.63B	17.07B	18.03B	19.47B	19.74B
Property, Plant & Equipment	2.28B	2.29B	2.46B	2.55B	4.25B	4.68B	3.64B	3.81B	4.04B	4.28B
Fixed Asset Turnover	83.79x	86.62x	84.56x	84.11x	54.35x	50.89x	72.52x	72.59x	76.38x	83.81x
Goodwill	9.79B	10.59B	10.92B	9.36B	9.36B	9.49B	9.45B	9.95B	10.13B	10.02B
Intangible Assets	3.02B	3.67B	4.1B	3.69B	3.16B	2.88B	2.06B	2.28B	2.11B	1.46B
Long-Term Investments	0	4.06B	3.73B	3.51B	170M	72M	0	312M	348M	0
Other Non-Current Assets	3.04B	3.42B	2.03B	2.1B	2.26B	2.58B	1.92B	1.99B	2.84B	3.97B
Total Assets+	56.56B	60.97B	60.38B	59.67B	61.25B	65.02B	63.3B	62.32B	67.44B	75.14B
Asset Turnover	3.37x	3.26x	3.45x	3.59x	3.77x	3.66x	4.17x	4.44x	4.58x	4.78x
Asset Growth %	0.05%	0.08%	-0.01%	-0.01%	0.03%	0.06%	-0.03%	-0.02%	0.08%	0.11%
Total Current Liabilities+	35.07B	35.61B	36.69B	37.63B	42.62B	44.1B	48.47B	47.96B	52.36B	61.6B
Accounts Payable	28.59B	31.02B	32.18B	33.85B	37.2B	38.98B	38.09B	42.49B	47.1B	55.33B
Days Payables Outstanding	57.98	60.28	59.33	60.7	61.81	62.77	55.31	58.56	57.93	58.27
Short-Term Debt	1.62B	1.24B	1.13B	330M	1.05B	742M	799M	968M	50M	1.19B
Deferred Revenue (Current)	1000K	1000K	1000K	0	0	0	0	0	0	0
Other Current Liabilities	0	0	-63M	0	683M	9M	4.74B	0	0	0
Current Ratio	1.10x	1.04x	1.01x	1.02x	0.99x	1.03x	0.95x	0.92x	0.92x	0.90x
Quick Ratio	0.66x	0.61x	0.57x	0.58x	0.60x	0.59x	0.57x	0.51x	0.51x	0.53x
Cash Conversion Cycle	7.5	2.9	1.77	0.33	-2.48	-2.38	-2.46	-5.82	-6.38	-7.98
Total Non-Current Liabilities+	11.08B	12.76B	12.18B	12.37B	11.91B	19.47B	16.62B	15.85B	16.68B	15.23B
Long-Term Debt	6.5B	7.3B	6.75B	7.26B	6.33B	6.41B	5.08B	4.63B	5.58B	4.46B
Capital Lease Obligations	0	0	0	43M	1.66B	1.87B	1.37B	1.4B	1.47B	1.48B
Deferred Tax Liabilities	2.73B	3.68B	2.8B	3B	2.25B	1.41B	1.42B	1.39B	917M	1.03B
Other Non-Current Liabilities	1.81B	1.77B	2.63B	2.1B	1.66B	9.78B	8.76B	8.44B	8.72B	8.26B
Total Liabilities	46.15B	48.37B	48.87B	49.99B	54.54B	63.57B	65.09B	63.81B	69.04B	76.83B
Total Debt+	8.15B	8.54B	7.88B	7.59B	9.4B	9.4B	7.54B	7.29B	7.39B	7.39B
Net Debt	4.11B	5.76B	5.21B	4.61B	5.39B	3.13B	4.01B	2.62B	2.81B	1.7B
Debt / Equity	0.78x	0.68x	0.68x	0.78x	1.40x	6.50x	-	-	-	-
Debt / EBITDA	1.72x	2.00x	2.04x	1.89x	2.39x	1.99x	2.03x	1.37x	1.62x	1.48x
Net Debt / EBITDA	0.87x	1.35x	1.35x	1.15x	1.37x	0.66x	1.08x	0.49x	0.62x	0.34x
Interest Coverage	10.91x	10.90x	10.32x	11.66x	12.10x	16.18x	15.30x	17.96x	16.16x	17.08x
Total Equity+	10.41B	12.6B	11.52B	9.68B	6.71B	1.45B	-1.79B	-1.49B	-1.6B	-1.69B
Equity Growth %	0.1%	0.21%	-0.09%	-0.16%	-0.31%	-0.78%	-2.24%	0.17%	-0.07%	-0.06%
Book Value per Share	44.70	56.50	55.10	49.06	36.87	9.00	-11.63	-10.48	-11.92	-13.22
Total Shareholders' Equity	8.92B	11.1B	9.8B	8.09B	5.09B	-21M	-2.27B	-1.86B	-1.97B	-2.07B
Common Stock	3M	3M	3M	3M	2M	2M	2M	3M	3M	3M
Retained Earnings	8.36B	13.19B	12.99B	12.41B	13.02B	8.2B	9.03B	12.29B	14.98B	17.92B
Treasury Stock	-3.72B	-5.98B	-7.66B	-8.9B	-12.89B	-13.67B	-17.05B	-21B	-24.12B	-27.44B
Accumulated OCI	-1.56B	-2.14B	-1.72B	-1.85B	-1.7B	-1.48B	-1.53B	-905M	-881M	-932M
Minority Interest	1.49B	1.5B	1.71B	1.59B	1.62B	1.47B	480M	367M	372M	380M

Cash Flow

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operations+	3.67B	4.74B	4.34B	4.04B	4.37B	4.54B	4.43B	5.16B	4.31B	6.08B
Operating CF Margin %	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.01%	0.02%
Operating CF Growth %	0.18%	0.29%	-0.08%	-0.07%	0.08%	0.04%	-0.02%	0.16%	-0.16%	0.41%
Net Income	2.31B	5.15B	297M	33M	1.12B	-4.34B	1.29B	3.72B	3.16B	3.48B
Depreciation & Amortization	885M	910M	951M	949M	922M	887M	760M	608M	635M	636M
Stock-Based Compensation	123M	115M	69M	0	0	0	161M	162M	0	0
Deferred Taxes	64M	882M	-868M	189M	-342M	-908M	34M	-20M	-603M	-110M
Other Non-Cash Items	394M	-4B	2.38B	2.25B	1.99B	1.23B	2.11B	303M	1.19B	923M
Working Capital Changes	-104M	1.69B	1.52B	614M	689M	7.67B	82M	384M	-64M	1.16B
Change in Receivables	-1.96B	-762M	1.18B	-967M	-2.49B	1.15B	-1.84B	-1.08B	-2.95B	-3.94B
Change in Inventory	-1.25B	320M	-458M	-368M	-376M	-2.28B	-1.17B	-1.26B	-1.29B	-2.27B
Change in Payables	3.3B	2.07B	271M	1.98B	0	0	2.8B	3.79B	0	0
Cash from Investing+	-1.56B	-3.8B	-1.52B	-1.38B	-579M	-415M	-89M	-542M	-1.07B	-733M
Capital Expenditures	-677M	-562M	-580M	-557M	-506M	-641M	-535M	-558M	-431M	-537M
CapEx % of Revenue	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-861M	-431M	1.63B	111M	60M	-139M	-126M	-1.06B	-416M	-351M
Cash from Financing+	-3.45B	-2.07B	-3.08B	-2.23B	-2.73B	-1.69B	-6.32B	-4.37B	-3.34B	-3.96B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-244M	-253M	-262M	-292M	-294M	-276M	-277M	-292M	-314M	-345M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	5M	102M	-165M	-280M	-208M	-135M	-1.38B	-324M	-175M	-554M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	3B	4.18B	3.77B	3.48B	3.87B	3.9B	3.9B	4.6B	3.63B	5.23B
FCF Margin %	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.01%	0.02%	0.01%	0.01%
FCF Growth %	0.17%	0.4%	-0.1%	-0.08%	0.11%	0.01%	-0%	0.18%	-0.21%	0.44%
FCF per Share	12.85	18.75	18.01	17.63	21.25	24.29	25.30	32.36	27.05	40.80
FCF Conversion (FCF/Net Income)	1.63x	0.92x	64.85x	118.71x	4.86x	-1.00x	3.98x	1.45x	1.44x	1.85x
Interest Paid	337M	315M	298M	383M	235M	220M	186M	224M	234M	273M
Taxes Paid	923M	587M	144M	262M	368M	379M	359M	562M	901M	1.12B

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	22.71%	45.04%	0.56%	0.32%	10.98%	-111.29%	-	-	-	-
Return on Invested Capital (ROIC)	20.27%	15.31%	12.49%	14.88%	17.12%	31.58%	60.15%	199.69%	252.27%	540.64%
Gross Margin	5.73%	5.38%	4.99%	5.02%	4.93%	4.86%	4.79%	4.29%	3.95%	3.48%
Net Margin	1.18%	2.61%	0.03%	0.02%	0.39%	-1.91%	0.42%	1.29%	0.97%	0.92%
Debt / Equity	0.78x	0.68x	0.68x	0.78x	1.40x	6.50x	-	-	-	-
Interest Coverage	10.91x	10.90x	10.32x	11.66x	12.10x	16.18x	15.30x	17.96x	16.16x	17.08x
FCF Conversion	1.63x	0.92x	64.85x	118.71x	4.86x	-1.00x	3.98x	1.45x	1.44x	1.85x
Revenue Growth	6.61%	4.01%	4.95%	2.86%	7.81%	3.11%	10.8%	4.83%	11.65%	16.22%

Revenue by Segment

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
U.S. Pharmaceutical	-	-	-	167.76B	183.34B	189.27B	212.15B	240.62B	278.74B	327.72B
U.S. Pharmaceutical Growth	-	-	-	-	9.29%	3.24%	12.09%	13.42%	15.84%	17.57%
International	-	-	-	-	-	35.97B	36.34B	20.6B	14.13B	14.72B
International Growth	-	-	-	-	-	-	1.06%	-43.33%	-31.40%	4.18%
Medical-Surgical Solutions	-	-	-	7.62B	8.3B	10.1B	11.61B	11.11B	11.31B	11.39B
Medical-Surgical Solutions Growth	-	-	-	-	9.02%	21.60%	14.94%	-4.29%	1.83%	0.65%
Prescription Technology Solutions	-	-	-	-	-	2.89B	3.86B	4.39B	4.77B	5.22B
Prescription Technology Solutions Growth	-	-	-	-	-	-	33.70%	13.54%	8.71%	9.37%
Distribution Solutions	188B	195.92B	208.12B	-	-	-	-	-	-	-
Distribution Solutions Growth	-	4.21%	6.22%	-	-	-	-	-	-	-
Technology Solutions	2.88B	2.61B	240M	-	-	-	-	-	-	-
Technology Solutions Growth	-	-9.53%	-90.80%	-	-	-	-	-	-	-

Revenue by Geography

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
UNITED STATES	158.25B	164.43B	169.94B	176.3B	192.71B	-	-	-	-	-
UNITED STATES Growth	-	3.90%	3.35%	3.74%	9.31%	-	-	-	-	-
International	32.63B	34.1B	38.41B	38.02B	38.34B	-	-	-	-	-
International Growth	-	4.52%	12.63%	-1.02%	0.84%	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

McKesson Corporation (MCK) has a price-to-earnings (P/E) ratio of 32.8x. This suggests investors expect higher future growth.

Growth & Financials

McKesson Corporation (MCK) reported $387.09B in revenue for fiscal year 2025. This represents a 215% increase from $122.73B in 2012.

McKesson Corporation (MCK) grew revenue by 16.2% over the past year. This is strong growth.

Yes, McKesson Corporation (MCK) is profitable, generating $4.03B in net income for fiscal year 2025 (0.9% net margin).

Dividend & Returns

Yes, McKesson Corporation (MCK) pays a dividend with a yield of 0.32%. This makes it attractive for income-focused investors.

McKesson Corporation (MCK) generated $6.39B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

...