Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
McKesson Corp., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | McKesson Corp. current ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | McKesson Corp. quick ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016 not reaching 2014 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | McKesson Corp. cash ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
Current Ratio
McKesson Corp., current ratio calculation, comparison to benchmarks
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 38,437) | 36,670) | 32,573) | 23,170) | 23,603) | 22,357) | |
| Current liabilities | 35,071) | 33,497) | 29,501) | 21,357) | 21,686) | 18,726) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.10 | 1.09 | 1.10 | 1.08 | 1.09 | 1.19 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | — | |
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
Current ratio = Current assets ÷ Current liabilities
= 38,437 ÷ 35,071 = 1.10
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | McKesson Corp. current ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Quick Ratio
McKesson Corp., quick ratio calculation, comparison to benchmarks
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,048) | 5,341) | 4,193) | 2,456) | 3,149) | 3,612) | |
| Receivables, net | 17,980) | 15,914) | 14,193) | 9,975) | 9,977) | 9,187) | |
| Total quick assets | 22,028) | 21,255) | 18,386) | 12,431) | 13,126) | 12,799) | |
| Current liabilities | 35,071) | 33,497) | 29,501) | 21,357) | 21,686) | 18,726) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.63 | 0.63 | 0.62 | 0.58 | 0.61 | 0.68 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 22,028 ÷ 35,071 = 0.63
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | McKesson Corp. quick ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016 not reaching 2014 level. |
Cash Ratio
McKesson Corp., cash ratio calculation, comparison to benchmarks
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,048) | 5,341) | 4,193) | 2,456) | 3,149) | 3,612) | |
| Total cash assets | 4,048) | 5,341) | 4,193) | 2,456) | 3,149) | 3,612) | |
| Current liabilities | 35,071) | 33,497) | 29,501) | 21,357) | 21,686) | 18,726) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.12 | 0.16 | 0.14 | 0.11 | 0.15 | 0.19 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 4,048 ÷ 35,071 = 0.12
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | McKesson Corp. cash ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |