Stock Analysis on Net
Stock Analysis on Net

McKesson Corp. (NYSE:MCK)

This company has been moved to the archive! The financial data has not been updated since October 27, 2016.

Analysis of Bad Debts

Microsoft Excel

Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company gross accounts receivable. The relationship between the allowance and the balance in receivables should be relatively constant unless there is a change in the economy overall or a change in customer base.

Allowance for Doubtful Accounts Receivable

Microsoft Excel
Mar 31, 2016 Mar 31, 2015 Mar 31, 2014 Mar 31, 2013 Mar 31, 2012 Mar 31, 2011
Selected Financial Data (US$ in millions)
Allowances for doubtful accounts 212 141 113 121 111 124
Receivables, gross 18,192 16,055 14,306 10,096 10,088 9,311
Financial Ratio
Allowance as a percentage of receivables, gross1 1.17% 0.88% 0.79% 1.20% 1.10% 1.33%

Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).

1 2016 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances for doubtful accounts ÷ Receivables, gross
= 100 × 212 ÷ 18,192 = 1.17%

Financial ratio Description The company
Allowance as a percentage of receivables, gross Allowance for doubtful accounts divided by the gross accounts receivable. McKesson Corp. allowance as a percentage of receivables, gross increased from 2014 to 2015 and from 2015 to 2016.