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 Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

McKesson Corp., balance sheet: property, plant and equipment

US$ in millions

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Mar 31, 2016 Mar 31, 2015 Mar 31, 2014 Mar 31, 2013 Mar 31, 2012 Mar 31, 2011
Land 228 207 221 129 68 70
Building, machinery, equipment and other 3,556 3,237 3,180 2,400 2,107 1,973
Property, plant and equipment, gross 3,784 3,444 3,401 2,529 2,175 2,043
Accumulated depreciation (1,506) (1,399) (1,179) (1,208) (1,132) (1,052)
Property, plant and equipment, net 2,278 2,045 2,222 1,321 1,043 991

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).

Item Description The company
Property, plant and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. McKesson Corp. property, plant and equipment, gross increased from 2014 to 2015 and from 2015 to 2016.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. McKesson Corp. property, plant and equipment, net decreased from 2014 to 2015 but then increased from 2015 to 2016 exceeding 2014 level.

Asset Age Ratios (Summary)

McKesson Corp., asset age ratios

Microsoft Excel
Mar 31, 2016 Mar 31, 2015 Mar 31, 2014 Mar 31, 2013 Mar 31, 2012 Mar 31, 2011
Average age ratio 42.35% 43.22% 37.08% 50.33% 53.73% 53.32%
Estimated total useful life (years) 13 11 17 16 15 14
Estimated age, time elapsed since purchase (years) 5 5 6 8 8 8
Estimated remaining life (years) 7 6 11 8 7 7

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. McKesson Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. McKesson Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. McKesson Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.
Estimated remaining life McKesson Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.

Average Age

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)
Accumulated depreciation 1,506 1,399 1,179 1,208 1,132 1,052
Property, plant and equipment, gross 3,784 3,444 3,401 2,529 2,175 2,043
Land 228 207 221 129 68 70
Asset Age Ratio
Average age1 42.35% 43.22% 37.08% 50.33% 53.73% 53.32%

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).

2016 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 1,506 ÷ (3,784 – 228) = 42.35%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. McKesson Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.

Estimated Total Useful Life

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)
Property, plant and equipment, gross 3,784 3,444 3,401 2,529 2,175 2,043
Land 228 207 221 129 68 70
Depreciation expense 281 306 186 146 140 139
Asset Age Ratio (Years)
Estimated total useful life1 13 11 17 16 15 14

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).

2016 Calculations

1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense
= (3,784 – 228) ÷ 281 = 13

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. McKesson Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.

Estimated Age, Time Elapsed since Purchase

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)
Accumulated depreciation 1,506 1,399 1,179 1,208 1,132 1,052
Depreciation expense 281 306 186 146 140 139
Asset Age Ratio (Years)
Time elapsed since purchase1 5 5 6 8 8 8

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).

2016 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 1,506 ÷ 281 = 5

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. McKesson Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.

Estimated Remaining Life

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)
Property, plant and equipment, net 2,278 2,045 2,222 1,321 1,043 991
Land 228 207 221 129 68 70
Depreciation expense 281 306 186 146 140 139
Asset Age Ratio (Years)
Estimated remaining life1 7 6 11 8 7 7

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).

2016 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (2,278 – 228) ÷ 281 = 7

Asset age ratio Description The company
Estimated remaining life McKesson Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.