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 Short-term (Operating) Activity Ratios 
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

McKesson Corp., short-term (operating) activity ratios (quarterly data)

Microsoft Excel
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
Turnover Ratios
Inventory turnover 11.97 11.72 11.70 10.83 11.30 11.49 11.73 10.48 10.67 9.89 9.72 10.67 11.39 11.28 11.17 11.23 11.56 11.62 11.53 10.93 11.77 11.39 11.50
Receivables turnover 10.61 10.53 10.62 10.87 11.17 10.98 11.25 10.39 10.40 9.98 9.70 12.10 12.30 12.37 12.28 12.40 12.54 12.92 12.30 12.39 12.31 12.23 12.20
Payables turnover 5.89 5.97 6.28 6.62 6.49 6.52 6.66 6.40 6.63 6.13 6.03 7.35 7.26 7.00 7.17 7.76 7.51 7.72 7.21 7.23 7.45 7.46 7.53
Working capital turnover 45.32 78.36 56.71 50.01 47.24 46.98 56.43 39.48 35.25 31.49 44.79 39.07 40.10 47.90 67.54 38.23 52.62 63.13 64.02 31.11 34.33 35.46 30.87
Average No. Days
Average inventory processing period 30 31 31 34 32 32 31 35 34 37 38 34 32 32 33 32 32 31 32 33 31 32 32
Add: Average receivable collection period 34 35 34 34 33 33 32 35 35 37 38 30 30 30 30 29 29 28 30 29 30 30 30
Operating cycle 64 66 65 68 65 65 63 70 69 74 76 64 62 62 63 61 61 59 62 62 61 62 62
Less: Average payables payment period 62 61 58 55 56 56 55 57 55 60 60 50 50 52 51 47 49 47 51 50 49 49 48
Cash conversion cycle 2 5 7 13 9 9 8 13 14 14 16 14 12 10 12 14 12 12 11 12 12 13 14

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. McKesson Corp. inventory turnover ratio improved from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.
Receivables turnover An activity ratio equal to revenue divided by receivables. McKesson Corp. receivables turnover ratio deteriorated from Q4 2016 to Q1 2017 but then improved from Q1 2017 to Q2 2017 not reaching Q4 2016 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McKesson Corp. payables turnover ratio decreased from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.
Working capital turnover An activity ratio calculated as revenue divided by working capital. McKesson Corp. working capital turnover ratio improved from Q4 2016 to Q1 2017 but then deteriorated significantly from Q1 2017 to Q2 2017.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. McKesson Corp. operating cycle deteriorated from Q4 2016 to Q1 2017 but then improved from Q1 2017 to Q2 2017 exceeding Q4 2016 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. McKesson Corp. number of days of payables outstanding increased from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. McKesson Corp. cash conversion cycle improved from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.

Inventory Turnover

McKesson Corp., inventory turnover calculation (quarterly data)

Microsoft Excel
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)
Cost of sales 47,201 46,826 43,826 45,027 45,917 44,698 42,008 43,586 41,296 40,744 35,601 32,466 30,945 30,288 28,624 29,519 28,130 29,198 29,854 29,273 28,569 28,471 27,102 26,786 26,168 26,058
Inventories, net 15,273 15,500 15,335 16,411 15,587 14,932 14,296 15,378 14,063 14,124 13,308 11,462 10,484 10,332 10,335 10,390 10,070 10,059 10,073 10,376 9,426 9,530 9,225 9,547 8,763 9,429
Short-term Activity Ratio
Inventory turnover1 11.97 11.72 11.70 10.83 11.30 11.49 11.73 10.48 10.67 9.89 9.72 10.67 11.39 11.28 11.17 11.23 11.56 11.62 11.53 10.93 11.77 11.39 11.50
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC

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
Inventory turnover = (Cost of salesQ2 2017 + Cost of salesQ1 2017 + Cost of salesQ4 2016 + Cost of salesQ3 2016) ÷ Inventories, net
= (47,201 + 46,826 + 43,826 + 45,027) ÷ 15,273 = 11.97

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. McKesson Corp. inventory turnover ratio improved from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.

Receivables Turnover

McKesson Corp., receivables turnover calculation (quarterly data)

Microsoft Excel
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)
Revenues 49,957 49,733 46,678 47,899 48,761 47,546 44,925 46,484 44,160 43,476 38,141 34,306 32,954 32,208 30,620 31,187 29,850 30,798 31,699 30,839 30,216 29,980 28,853 28,247 27,534 27,450
Receivables, net 18,308 18,334 17,980 17,402 16,798 16,684 15,914 16,581 15,391 14,920 14,193 10,750 10,321 10,013 9,975 9,962 9,823 9,564 9,977 9,673 9,525 9,372 9,187 8,647 8,175 7,832
Short-term Activity Ratio
Receivables turnover1 10.61 10.53 10.62 10.87 11.17 10.98 11.25 10.39 10.40 9.98 9.70 12.10 12.30 12.37 12.28 12.40 12.54 12.92 12.30 12.39 12.31 12.23 12.20
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Humana 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
Receivables turnover = (RevenuesQ2 2017 + RevenuesQ1 2017 + RevenuesQ4 2016 + RevenuesQ3 2016) ÷ Receivables, net
= (49,957 + 49,733 + 46,678 + 47,899) ÷ 18,308 = 10.61

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. McKesson Corp. receivables turnover ratio deteriorated from Q4 2016 to Q1 2017 but then improved from Q1 2017 to Q2 2017 not reaching Q4 2016 level.

Payables Turnover

McKesson Corp., payables turnover calculation (quarterly data)

Microsoft Excel
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)
Cost of sales 47,201 46,826 43,826 45,027 45,917 44,698 42,008 43,586 41,296 40,744 35,601 32,466 30,945 30,288 28,624 29,519 28,130 29,198 29,854 29,273 28,569 28,471 27,102 26,786 26,168 26,058
Drafts and accounts payable 31,037 30,424 28,585 26,854 27,151 26,319 25,166 25,205 22,656 22,812 21,429 16,638 16,435 16,654 16,108 15,047 15,501 15,151 16,114 15,677 14,895 14,547 14,090 13,581 12,834 13,296
Short-term Activity Ratio
Payables turnover1 5.89 5.97 6.28 6.62 6.49 6.52 6.66 6.40 6.63 6.13 6.03 7.35 7.26 7.00 7.17 7.76 7.51 7.72 7.21 7.23 7.45 7.46 7.53
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Elevance Health Inc.
Humana 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
Payables turnover = (Cost of salesQ2 2017 + Cost of salesQ1 2017 + Cost of salesQ4 2016 + Cost of salesQ3 2016) ÷ Drafts and accounts payable
= (47,201 + 46,826 + 43,826 + 45,027) ÷ 31,037 = 5.89

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McKesson Corp. payables turnover ratio decreased from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.

Working Capital Turnover

McKesson Corp., working capital turnover calculation (quarterly data)

Microsoft Excel
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)
Current assets 41,338 39,038 38,437 38,261 38,749 38,571 36,670 37,141 33,879 33,973 32,573 25,234 24,545 24,067 23,170 23,439 23,091 22,054 23,603 24,569 23,262 22,374 22,357 21,693 20,244 20,791
Less: Current liabilities 37,051 36,574 35,071 34,479 34,775 34,673 33,497 32,778 29,337 29,245 29,501 21,904 21,379 21,481 21,357 20,208 20,750 20,097 21,686 20,715 19,845 19,142 18,726 19,685 16,385 16,890
Working capital 4,287 2,464 3,366 3,782 3,974 3,898 3,173 4,363 4,542 4,728 3,072 3,330 3,166 2,586 1,813 3,231 2,341 1,957 1,917 3,854 3,417 3,232 3,631 2,008 3,859 3,901
 
Revenues 49,957 49,733 46,678 47,899 48,761 47,546 44,925 46,484 44,160 43,476 38,141 34,306 32,954 32,208 30,620 31,187 29,850 30,798 31,699 30,839 30,216 29,980 28,853 28,247 27,534 27,450
Short-term Activity Ratio
Working capital turnover1 45.32 78.36 56.71 50.01 47.24 46.98 56.43 39.48 35.25 31.49 44.79 39.07 40.10 47.90 67.54 38.23 52.62 63.13 64.02 31.11 34.33 35.46 30.87
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Elevance Health Inc.
Humana 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
Working capital turnover = (RevenuesQ2 2017 + RevenuesQ1 2017 + RevenuesQ4 2016 + RevenuesQ3 2016) ÷ Working capital
= (49,957 + 49,733 + 46,678 + 47,899) ÷ 4,287 = 45.32

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. McKesson Corp. working capital turnover ratio improved from Q4 2016 to Q1 2017 but then deteriorated significantly from Q1 2017 to Q2 2017.

Average Inventory Processing Period

McKesson Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel
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
Inventory turnover 11.97 11.72 11.70 10.83 11.30 11.49 11.73 10.48 10.67 9.89 9.72 10.67 11.39 11.28 11.17 11.23 11.56 11.62 11.53 10.93 11.77 11.39 11.50
Short-term Activity Ratio (no. days)
Average inventory processing period1 30 31 31 34 32 32 31 35 34 37 38 34 32 32 33 32 32 31 32 33 31 32 32
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.97 = 30

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

McKesson Corp., average receivable collection period calculation (quarterly data)

Microsoft Excel
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
Receivables turnover 10.61 10.53 10.62 10.87 11.17 10.98 11.25 10.39 10.40 9.98 9.70 12.10 12.30 12.37 12.28 12.40 12.54 12.92 12.30 12.39 12.31 12.23 12.20
Short-term Activity Ratio (no. days)
Average receivable collection period1 34 35 34 34 33 33 32 35 35 37 38 30 30 30 30 29 29 28 30 29 30 30 30
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Humana 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.61 = 34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

McKesson Corp., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
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
Average inventory processing period 30 31 31 34 32 32 31 35 34 37 38 34 32 32 33 32 32 31 32 33 31 32 32
Average receivable collection period 34 35 34 34 33 33 32 35 35 37 38 30 30 30 30 29 29 28 30 29 30 30 30
Short-term Activity Ratio
Operating cycle1 64 66 65 68 65 65 63 70 69 74 76 64 62 62 63 61 61 59 62 62 61 62 62
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC

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 cycle = Average inventory processing period + Average receivable collection period
= 30 + 34 = 64

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. McKesson Corp. operating cycle deteriorated from Q4 2016 to Q1 2017 but then improved from Q1 2017 to Q2 2017 exceeding Q4 2016 level.

Average Payables Payment Period

McKesson Corp., average payables payment period calculation (quarterly data)

Microsoft Excel
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
Payables turnover 5.89 5.97 6.28 6.62 6.49 6.52 6.66 6.40 6.63 6.13 6.03 7.35 7.26 7.00 7.17 7.76 7.51 7.72 7.21 7.23 7.45 7.46 7.53
Short-term Activity Ratio (no. days)
Average payables payment period1 62 61 58 55 56 56 55 57 55 60 60 50 50 52 51 47 49 47 51 50 49 49 48
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories
Cigna Group
CVS Health Corp.
Elevance Health Inc.
Humana 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.89 = 62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. McKesson Corp. number of days of payables outstanding increased from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.

Cash Conversion Cycle

McKesson Corp., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
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
Average inventory processing period 30 31 31 34 32 32 31 35 34 37 38 34 32 32 33 32 32 31 32 33 31 32 32
Average receivable collection period 34 35 34 34 33 33 32 35 35 37 38 30 30 30 30 29 29 28 30 29 30 30 30
Average payables payment period 62 61 58 55 56 56 55 57 55 60 60 50 50 52 51 47 49 47 51 50 49 49 48
Short-term Activity Ratio
Cash conversion cycle1 2 5 7 13 9 9 8 13 14 14 16 14 12 10 12 14 12 12 11 12 12 13 14
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories
CVS Health Corp.
Intuitive Surgical Inc.
Medtronic PLC

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 30 + 3462 = 2

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. McKesson Corp. cash conversion cycle improved from Q4 2016 to Q1 2017 and from Q1 2017 to Q2 2017.