Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Profitability Ratios (Summary)
McKesson Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-K (reporting date: 2011-03-31), 10-Q (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30).
The analyzed financial ratios indicate several trends in profitability and efficiency over the period between 2010 and 2016.
- Gross Profit Margin
- The gross profit margin displays a generally steady increase from mid-2010 through late 2014, starting at slightly above 5% and peaking around 6.4% in late 2014. After this peak, there is a gradual decline observed, dropping to just under 5.9% by the third quarter of 2016. This suggests that while the company initially improved its direct profitability from revenues, cost pressures or pricing adjustments may have contributed to the later marginal contraction.
- Operating Profit Margin
- Operating profit margin follows a similar initial upward trend from approximately 1.6% in mid-2010 to about 1.93%-1.94% in early 2013, indicating enhanced operational efficiency or better control over operating expenses during this period. This is followed by a period of slight volatility with values fluctuating between 1.57% and 1.86% until late 2016. The marginal rise toward 1.85% by mid-2016 suggests partial recovery or stabilization of operating performance.
- Net Profit Margin
- The net profit margin exhibits moderate stability with values generally ranging between 1.0% and 1.3% up to early 2013. However, during the mid-2013 to 2015 period, the margin experienced some decline with intermittent recoveries, peaking again at 1.18% in early 2016 before dipping slightly to 0.99% by late 2016. This fluctuation reflects variations in overall profitability influenced by non-operating factors such as interest, taxes, and extraordinary items.
- Return on Equity (ROE)
- ROE shows a positive upward trajectory from mid-2010, rising significantly from around 16.5% to more than 25% by mid-2016. This indicates an increasing ability of the company to generate shareholder returns from equity over time despite some fluctuations. Notably, the sharp rise post-2014 points to improved financial leverage or net income growth relative to equity.
- Return on Assets (ROA)
- ROA demonstrates an initial increase from approximately 3.6% in mid-2010 to almost 4.9% by late 2012, implying greater asset utilization efficiency. Afterward, a notable decline occurs until early 2014, with values declining below 2.5%, possibly reflecting increased asset base or lower net income impact. A recovery trend is seen from 2014 onward, with ROA reaching near 4% by mid-2016, indicating renewed effectiveness in asset deployment to generate earnings.
Return on Sales
Return on Investment
Gross Profit Margin
McKesson Corp., gross profit margin calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-K (reporting date: 2011-03-31), 10-Q (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30).
1 Q2 2017 Calculation
Gross profit margin = 100
× (Gross profitQ2 2017
+ Gross profitQ1 2017
+ Gross profitQ4 2016
+ Gross profitQ3 2016)
÷ (RevenuesQ2 2017
+ RevenuesQ1 2017
+ RevenuesQ4 2016
+ RevenuesQ3 2016)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends in gross profit, revenues, and gross profit margin over the presented quarters.
- Gross Profit
- The gross profit generally shows an upward trend from mid-2010 through mid-2016, rising from approximately $1.39 billion in June 2010 to about $2.76 billion by September 2016. There are noticeable fluctuations within quarters; for example, peaks are observed around March 2012, March 2013, and particularly March 2014, where gross profit reached $2.54 billion. Despite some quarterly volatility, the overall trajectory is positive, suggesting growth in the core profitability of the company's operations during this period.
- Revenues
- Revenues also exhibit a sustained increase throughout the periods, starting at around $27.45 billion in June 2010 and rising to nearly $49.96 billion by September 2016. The revenue pattern features some short-term volatility, with minor declines in certain quarters (e.g., a dip from $43.48 billion in June 2014 to $44.16 billion in September 2014 is not present; rather, revenues continue climbing). A significant and consistent upward momentum is seen especially from mid-2013 onwards, underlining expansion in sales or business volume over time.
- Gross Profit Margin
- The gross profit margin percentages appear only from March 2011 onward and indicate a gradual increase over the periods. Beginning at approximately 5.33% in March 2011, the margin steadily rises to peak around 6.41% in December 2014, suggesting improving efficiency or enhanced pricing power. After this peak, there is a slight downward drift in margins, declining to about 5.86% by September 2016. This pattern might reflect changing cost structures or competitive dynamics affecting profitability after 2014.
In summary, the data demonstrates consistent growth in both gross profit and revenues over six years, accompanied by incremental improvements in gross profit margin until late 2014. The slight margin contraction thereafter, despite rising absolute gross profits and revenues, could warrant further examination of cost controls or pricing strategy. Overall, the financial performance trends suggest strengthening operational results with some indications of cost or margin pressures in the latter years.
Operating Profit Margin
McKesson Corp., operating profit margin calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-K (reporting date: 2011-03-31), 10-Q (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30).
1 Q2 2017 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2017
+ Operating incomeQ1 2017
+ Operating incomeQ4 2016
+ Operating incomeQ3 2016)
÷ (RevenuesQ2 2017
+ RevenuesQ1 2017
+ RevenuesQ4 2016
+ RevenuesQ3 2016)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating income of the company exhibited considerable fluctuations over the observed quarters, with values ranging from a low of 307 million US dollars in December 2010 to a peak of 954 million US dollars in September 2015. Notably, there was a general upward trajectory from early 2011 through 2014, with some intermittent decreases. The highest operating income values appeared between late 2014 and mid-2016, although a decline is visible in the last quarter of the dataset.
Revenues showed an overall increasing trend across the analyzed periods. Starting from approximately 27.4 billion US dollars in June 2010, revenues climbed steadily, reaching over 49 billion US dollars by the third quarter of 2016. Some quarters experienced minor regressions, particularly around 2012 and early 2016, but the general direction remained positive, indicating business growth in terms of sales volume or value.
The operating profit margin, available for most quarters from March 2011 onwards, generally stayed within a narrow band, predominantly fluctuating between 1.57% and 1.94%. The margin demonstrated slight upward momentum from early 2011 through the end of 2013, peaking near 1.94%. Subsequently, there were minor oscillations, but the percentage remained relatively stable around the mid-to-high 1% range, reflecting a consistent ability to generate operating profit relative to revenues despite the variations in absolute income and revenue figures.
- Operating Income
- Displayed variability with a general upward trend from 2010 through 2015.
- Reaching peak values in late 2015 followed by a slight decrease towards 2016.
- Indicative of fluctuating profitability at the operating level.
- Revenues
- Consistently increased over the six-year period, doubling from mid-2010 to late 2016.
- Minor declines observed in certain quarters but overall trend positive.
- Suggests growth in the company's sales or service activities.
- Operating Profit Margin
- Remained relatively stable between 1.57% and 1.94%, with no extreme volatility.
- Marginal improvement noted until the end of 2013, then mostly plateaued.
- Reflects steady control over operating expenses relative to revenue.
Net Profit Margin
McKesson Corp., net profit margin calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income attributable to McKesson Corporation | ||||||||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-K (reporting date: 2011-03-31), 10-Q (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30).
1 Q2 2017 Calculation
Net profit margin = 100
× (Net income attributable to McKesson CorporationQ2 2017
+ Net income attributable to McKesson CorporationQ1 2017
+ Net income attributable to McKesson CorporationQ4 2016
+ Net income attributable to McKesson CorporationQ3 2016)
÷ (RevenuesQ2 2017
+ RevenuesQ1 2017
+ RevenuesQ4 2016
+ RevenuesQ3 2016)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data demonstrates fluctuating net income and revenues over the observed periods, alongside variations in net profit margin percentages.
- Net Income
- The net income attributable to the corporation exhibits significant variability quarter to quarter. Early periods show moderate values around the 300 million USD mark, with a notable peak at 521 million USD around the first quarter of 2012. Subsequently, net income demonstrates some volatility with intermittent rises and declines. For example, a sharp decline is evident at the end of 2013 with net income dropping to 64 million USD, followed by a recovery period reaching approximately 469 million USD in early 2015. Later quarters maintain a level fluctuating between roughly 300 million USD and over 600 million USD, peaking near 634 million in late 2015 before softening again toward mid-2016.
- Revenues
- Revenues display a general upward trend across the entire timeframe. Starting near 27.5 billion USD in mid-2010, revenues increase steadily, with some periods of slight decline or plateau, for example, around mid-2012 and early 2013. After 2013, revenues rise more markedly, reaching above 44 billion USD by mid-2014 and continuing upward to nearly 50 billion USD toward the middle of 2016. This trend signifies sustained growth in overall sales despite some quarterly fluctuations.
- Net Profit Margin
- Net profit margin percentages begin being reported from late 2010 and generally range between 0.82% and 1.30%. There is evidence of relative stability with margins clustering near 1.1% during much of 2011 and 2012, with some peaks reaching 1.3%. A downward trend starts around late 2013, with margins dipping below 1% intermittently, reaching lows near 0.82% before recovering again to values near or above 1% in later periods, including a peak of 1.18% in mid-2016. This suggests fluctuations in profitability relative to revenues that may be influenced by cost management or operational efficiency variations.
Overall, the data reflects a company experiencing revenue growth with variable profitability and net income, suggesting periods of investment, cost fluctuations, or external market conditions impacting earnings. The revenue trend is positive, but net income and margin volatility indicates potential challenges in maintaining consistent profit levels relative to sales.
Return on Equity (ROE)
McKesson Corp., ROE calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income attributable to McKesson Corporation | ||||||||||||||||||||||||||||||||||
| Total McKesson Corporation stockholders’ equity | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-K (reporting date: 2011-03-31), 10-Q (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30).
1 Q2 2017 Calculation
ROE = 100
× (Net income attributable to McKesson CorporationQ2 2017
+ Net income attributable to McKesson CorporationQ1 2017
+ Net income attributable to McKesson CorporationQ4 2016
+ Net income attributable to McKesson CorporationQ3 2016)
÷ Total McKesson Corporation stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends regarding profitability and equity over the observed quarters.
- Net Income
- Net income attributable to the company demonstrates variability over the periods, fluctuating from lows around 64 million US dollars to highs exceeding 634 million US dollars. The data exhibits no consistent upward or downward trend but shows volatility with occasional sharp increases and decreases, indicating potential episodic factors impacting profitability.
- Stockholders’ Equity
- Total stockholders’ equity generally trends upward over the quarters, increasing from approximately 6.88 billion US dollars to levels above 9.4 billion US dollars by the end of the dataset. Despite some minor fluctuations, the equity base shows steady growth, suggesting ongoing capital accumulation or retained earnings contributing to the company's financial strength.
- Return on Equity (ROE)
- The ROE metric, available for most quarters, reflects solid profitability relative to shareholder equity. It generally remains within a range from approximately 13.8% to 25.3%, with visible increases in the later periods. Peaks in ROE correspond to certain quarters with higher net income relative to equity, indicating efficient use of capital in generating earnings during those times.
Collectively, these insights point to a company maintaining a growing equity base while experiencing fluctuations in net income, yet managing to sustain a relatively high and sometimes improving return on equity across the examined timeframe. The variations in net income suggest sensitivity to external or operational factors, but the steady equity growth and strong ROE imply consistent value creation for shareholders.
Return on Assets (ROA)
McKesson Corp., ROA calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income attributable to McKesson Corporation | ||||||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-K (reporting date: 2011-03-31), 10-Q (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30).
1 Q2 2017 Calculation
ROA = 100
× (Net income attributable to McKesson CorporationQ2 2017
+ Net income attributable to McKesson CorporationQ1 2017
+ Net income attributable to McKesson CorporationQ4 2016
+ Net income attributable to McKesson CorporationQ3 2016)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable patterns and trends over the examined periods.
- Net Income Attributable to McKesson Corporation
-
Net income figures exhibit a fluctuating yet generally positive trajectory. The amounts range from lows around 64 million US dollars to highs exceeding 600 million US dollars across the quarters. Noteworthy is the considerable peak in the fourth quarter of 2015 with 617 million US dollars and a subsequent increase to 634 million in the same quarter of 2015. Following peaks, there are occasional declines, such as the drop to 64 million in late 2013, indicating some volatility in earnings performance. Overall, the company demonstrates resilience, recovering from downturns within short timeframes.
- Total Assets
-
Total assets display an upward trend over the full period. Starting at approximately 27.4 billion US dollars, the asset base grows steadily, surpassing 58 billion US dollars by the later dates surveyed. This growth suggests ongoing investment and expansion in the company's asset portfolio. Some quarters show slight declines or plateaus, such as around 2012 and 2015, but the long-term direction is consistently upward, reflecting strengthening asset capacity.
- Return on Assets (ROA)
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The ROA metric offers insights into the efficiency of asset utilization. Early data indicate ROA values near or above 3.8%, peaking close to 4.86% in late 2012. Subsequently, ROA declines, reaching a low near 2.34% around late 2014. Post this trough, a recovery trend is visible, with ROA improving to near 3.99% in mid-2016. This pattern suggests fluctuations in profitability relative to asset size, with periods of relative inefficiency followed by improved operational performance or asset management.
In conclusion, the financial data depict a corporation undergoing growth in asset scale while experiencing some variability in net income and asset returns. The increasing total assets paired with recovering ROA levels toward the end of the timeline may indicate strategic expansions accompanied by efforts to enhance profitability and asset use efficiency.