McKesson Corporation (MCK) Financial Ratios
30 years of historical data (1996–2025) · Healthcare · Medical - Distribution
EV/EBITDA
↑
18.74
↑+44% vs avg
5yr avg: 13.00
30Y Low4.7·High36.7
P/FCF
↑
17.63
↑+31% vs avg
5yr avg: 13.50
30Y Low6.4·High56.5
P/B Ratio
N/A
—
5yr avg: 21.66
30Y Low1.6·High21.7
ROE
N/A
—
5yr avg: -111.3%
30Y Low-111%·High45%
Debt/EBITDA
↓
1.48
↓-13% vs avg
5yr avg: 1.70
30Y Low0.7·High6.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MCK Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
McKesson Corporation trades at 29.2x earnings, 10% above its 5-year average of 26.7x, sitting at the 79th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.3x, the stock trades at a premium of 31%. On a free-cash-flow basis, the stock trades at 17.6x P/FCF, 31% above the 5-year average of 13.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $92.1B | $86.2B | $72.0B | $50.6B | $47.2B | $31.3B | $24.6B | $23.1B | $29.4B | $33.1B | $36.6B |
| Enterprise Value | $93.8B | $87.9B | $74.8B | $53.2B | $51.2B | $34.5B | $30.0B | $27.7B | $34.6B | $38.8B | $40.7B |
| P/E Ratio → | 29.25 | 26.17 | 23.98 | 14.22 | 42.34 | — | 27.33 | 688.59 | 440.22 | 6.52 | 16.21 |
| P/S Ratio | 0.26 | 0.24 | 0.23 | 0.18 | 0.18 | 0.13 | 0.11 | 0.11 | 0.14 | 0.17 | 0.19 |
| P/B Ratio | — | — | — | — | — | 21.66 | 3.67 | 2.39 | 2.56 | 2.62 | 3.52 |
| P/FCF | 17.63 | 16.50 | 19.85 | 11.00 | 12.10 | 8.03 | 6.36 | 6.64 | 7.82 | 7.91 | 12.23 |
| P/OCF | 15.14 | 14.17 | 16.69 | 9.81 | 10.64 | 6.90 | 5.63 | 5.72 | 6.78 | 6.97 | 9.98 |
P/E links to full P/E history page with 30-year chart
MCK EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
McKesson Corporation's enterprise value stands at 18.7x EBITDA, 44% above its 5-year average of 13.0x. The Healthcare sector median is 14.4x, placing the stock at a 30% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.24 | 0.24 | 0.19 | 0.19 | 0.14 | 0.13 | 0.13 | 0.17 | 0.20 | 0.21 |
| EV / EBITDA | 18.74 | 17.55 | 16.40 | 10.03 | 13.74 | 7.28 | 7.63 | 6.88 | 8.95 | 9.10 | 8.60 |
| EV / EBIT | 21.47 | 19.05 | 18.55 | 10.92 | 24.30 | — | 21.54 | 31.70 | 66.38 | 5.39 | 11.31 |
| EV / FCF | — | 16.82 | 20.62 | 11.57 | 13.13 | 8.83 | 7.76 | 7.96 | 9.20 | 9.28 | 13.60 |
MCK Profitability
Margins and return-on-capital ratios measuring operating efficiency
McKesson Corporation earns an operating margin of 1.2%. ROIC of 540.6% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 3.5% | 3.5% | 3.9% | 4.3% | 4.8% | 4.9% | 4.9% | 5.0% | 5.0% | 5.4% | 5.7% |
| Operating Margin | 1.2% | 1.2% | 1.3% | 1.6% | 1.0% | 1.5% | 1.3% | 1.4% | 1.4% | 1.7% | 2.0% |
| Net Profit Margin | 0.9% | 0.9% | 1.0% | 1.3% | 0.4% | -1.9% | 0.4% | 0.0% | 0.0% | 2.6% | 1.2% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | -111.3% | 11.0% | 0.3% | 0.6% | 45.0% | 22.7% |
| ROA | 4.6% | 4.6% | 4.6% | 5.7% | 1.7% | -7.2% | 1.5% | 0.1% | 0.1% | 8.8% | 4.1% |
| ROIC | 540.6% | 540.6% | 252.3% | 199.7% | 60.1% | 31.6% | 17.1% | 14.9% | 12.5% | 15.3% | 20.3% |
| ROCE | 30.5% | 30.5% | 26.7% | 30.5% | 15.2% | 17.8% | 14.8% | 13.5% | 11.9% | 14.3% | 18.4% |
MCK Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
McKesson Corporation carries a Debt/EBITDA ratio of 1.5x, which is manageable (55% below the sector average of 3.3x). Net debt stands at $1.7B ($7.4B total debt minus $5.7B cash). Interest coverage of 18.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | 6.50 | 1.40 | 0.78 | 0.68 | 0.68 | 0.78 |
| Debt / EBITDA | 1.48 | 1.48 | 1.62 | 1.37 | 2.03 | 1.99 | 2.39 | 1.89 | 2.04 | 2.00 | 1.72 |
| Net Debt / Equity | — | — | — | — | — | 2.16 | 0.80 | 0.48 | 0.45 | 0.46 | 0.39 |
| Net Debt / EBITDA | 0.34 | 0.34 | 0.62 | 0.49 | 1.08 | 0.66 | 1.37 | 1.15 | 1.35 | 1.35 | 0.87 |
| Debt / FCF | — | 0.33 | 0.77 | 0.57 | 1.03 | 0.80 | 1.39 | 1.33 | 1.38 | 1.38 | 1.37 |
| Interest Coverage | 18.03 | 18.03 | 16.59 | 19.67 | 11.83 | -22.20 | 5.59 | 3.31 | 1.84 | 23.37 | 10.21 |
MCK Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.90x is below 1.0, meaning current liabilities exceed current assets — though the company's $5.7B cash position helps mitigate short-term liquidity concerns. The quick ratio of 0.53x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.90 | 0.90 | 0.92 | 0.92 | 0.95 | 1.03 | 0.99 | 1.02 | 1.01 | 1.04 | 1.10 |
| Quick Ratio | 0.53 | 0.53 | 0.51 | 0.51 | 0.57 | 0.59 | 0.60 | 0.58 | 0.57 | 0.61 | 0.66 |
| Cash Ratio | 0.09 | 0.09 | 0.09 | 0.10 | 0.07 | 0.14 | 0.09 | 0.08 | 0.07 | 0.08 | 0.12 |
| Asset Turnover | — | 4.78 | 4.58 | 4.44 | 4.17 | 3.66 | 3.77 | 3.59 | 3.45 | 3.26 | 3.37 |
| Inventory Turnover | 15.07 | 15.07 | 14.04 | 13.45 | 13.44 | 11.78 | 13.13 | 12.18 | 12.14 | 12.30 | 11.73 |
| Days Sales Outstanding | — | 26.07 | 25.54 | 25.60 | 25.70 | 29.39 | 31.52 | 31.07 | 31.03 | 33.49 | 34.38 |
MCK Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
McKesson Corporation returns 3.8% to shareholders annually — split between a 0.4% dividend yield and 3.4% buyback yield. The payout ratio of 10.5% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.4% | 0.4% | 0.6% | 0.6% | 0.9% | 1.2% | 1.3% | 0.9% | 0.8% | 0.7% |
| Payout Ratio | 10.5% | 10.5% | 10.5% | 8.2% | 24.9% | — | 32.7% | 858.8% | 391.0% | 4.9% | 10.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 3.8% | 4.2% | 7.0% | 2.4% | — | 3.7% | 0.1% | 0.2% | 15.3% | 6.2% |
| FCF Yield | 5.7% | 6.1% | 5.0% | 9.1% | 8.3% | 12.5% | 15.7% | 15.1% | 12.8% | 12.6% | 8.2% |
| Buyback Yield | 3.4% | 3.6% | 4.2% | 7.2% | 7.5% | 2.4% | 7.9% | 7.1% | 5.8% | 7.0% | 4.4% |
| Total Shareholder Yield | 3.8% | 4.0% | 4.6% | 7.8% | 8.0% | 3.3% | 9.1% | 8.4% | 6.7% | 7.8% | 5.1% |
| Shares Outstanding | — | $128M | $134M | $142M | $154M | $161M | $182M | $197M | $209M | $223M | $233M |
Peer Comparison
Compare MCK with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MCKYou | $92B | 29.2 | 18.7 | 17.6 | 3.5% | 1.2% | — | 540.6% | 1.5 |
 CAH | $44B | 28.7 | 16.0 | 23.6 | 3.7% | 1.0% | — | 3378.7% | 3.0 |
 HSIC | $8B | 21.6 | 10.9 | 14.1 | 29.1% | 5.7% | 8.3% | 7.1% | 3.4 |
 CVS | $111B | 62.8 | 13.1 | 14.3 | 13.8% | 2.6% | 2.3% | 5.0% | 6.2 |
 CI | $75B | 12.8 | 8.4 | 8.9 | 9.5% | 3.3% | 14.3% | 10.4% | 2.7 |
 OMI | $171M | -0.2 | 1.7 | — | — | 1.0% | -2111.6% | 1.8% | 2.6 |
 JNJ | $536B | 38.4 | 18.6 | 27.0 | 69.1% | 24.9% | 20.1% | 20.7% | 1.2 |
 PFE | $151B | 19.5 | 10.7 | 16.6 | 70.3% | 24.7% | 8.9% | 7.5% | 3.3 |
 MRK | $277B | 15.4 | 10.7 | 22.4 | 72.0% | 36.2% | 36.9% | 22.0% | 1.7 |
 ABBV | $358B | 85.5 | 15.0 | 20.1 | 70.2% | 32.8% | 6214.7% | 23.9% | 2.4 |
 ORCL | $559B | 44.8 | 27.4 | — | 70.5% | 30.8% | 82.4% | 12.8% | 4.4 |
| Healthcare Median | — | 22.3 | 14.4 | 18.5 | 63.9% | -5.2% | -33.7% | -11.2% | 3.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 30 years · Updated daily
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Start ComparisonMCK — Frequently Asked Questions
Quick answers to the most common questions about buying MCK stock.
What is McKesson Corporation's P/E ratio?
McKesson Corporation's current P/E ratio is 29.2x. The historical average is 21.5x. This places it at the 79th percentile of its historical range.
What is McKesson Corporation's EV/EBITDA?
McKesson Corporation's current EV/EBITDA is 18.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Is MCK stock overvalued?
Based on historical data, McKesson Corporation is trading at a P/E of 29.2x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is McKesson Corporation's dividend yield?
McKesson Corporation's current dividend yield is 0.36% with a payout ratio of 10.5%.
What are McKesson Corporation's profit margins?
McKesson Corporation has 3.5% gross margin and 1.2% operating margin.
How much debt does McKesson Corporation have?
McKesson Corporation's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.