Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
McKesson Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | McKesson Corp. gross profit margin ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | McKesson Corp. operating profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | McKesson Corp. net profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | McKesson Corp. ROE improved from 2014 to 2015 and from 2015 to 2016. |
| ROA | A profitability ratio calculated as net income divided by total assets. | McKesson Corp. ROA improved from 2014 to 2015 and from 2015 to 2016. |
Gross Profit Margin
McKesson Corp., gross profit margin 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) | |||||||
| Gross profit | 11,416) | 11,411) | 8,309) | 6,984) | 6,567) | 5,970) | |
| Revenues | 190,884) | 179,045) | 137,609) | 122,455) | 122,734) | 112,084) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 5.98% | 6.37% | 6.04% | 5.70% | 5.35% | 5.33% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | — | |
| 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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 11,416 ÷ 190,884 = 5.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | McKesson Corp. gross profit margin ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
Operating Profit Margin
McKesson Corp., operating profit margin 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) | |||||||
| Operating income | 3,545) | 2,968) | 2,367) | 2,315) | 2,149) | 1,821) | |
| Revenues | 190,884) | 179,045) | 137,609) | 122,455) | 122,734) | 112,084) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 1.86% | 1.66% | 1.72% | 1.89% | 1.75% | 1.62% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | — | |
| 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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 3,545 ÷ 190,884 = 1.86%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | McKesson Corp. operating profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
Net Profit Margin
McKesson Corp., net profit margin 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) | |||||||
| Net income attributable to McKesson Corporation | 2,258) | 1,476) | 1,263) | 1,338) | 1,403) | 1,202) | |
| Revenues | 190,884) | 179,045) | 137,609) | 122,455) | 122,734) | 112,084) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 1.18% | 0.82% | 0.92% | 1.09% | 1.14% | 1.07% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | — | |
| 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
Net profit margin = 100 × Net income attributable to McKesson Corporation ÷ Revenues
= 100 × 2,258 ÷ 190,884 = 1.18%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | McKesson Corp. net profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
Return on Equity (ROE)
McKesson Corp., ROE 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) | |||||||
| Net income attributable to McKesson Corporation | 2,258) | 1,476) | 1,263) | 1,338) | 1,403) | 1,202) | |
| Total McKesson Corporation stockholders’ equity | 8,924) | 8,001) | 8,522) | 7,070) | 6,831) | 7,220) | |
| Profitability Ratio | |||||||
| ROE1 | 25.30% | 18.45% | 14.82% | 18.93% | 20.54% | 16.65% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | — | |
| 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
ROE = 100 × Net income attributable to McKesson Corporation ÷ Total McKesson Corporation stockholders’ equity
= 100 × 2,258 ÷ 8,924 = 25.30%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | McKesson Corp. ROE improved from 2014 to 2015 and from 2015 to 2016. |
Return on Assets (ROA)
McKesson Corp., ROA 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) | |||||||
| Net income attributable to McKesson Corporation | 2,258) | 1,476) | 1,263) | 1,338) | 1,403) | 1,202) | |
| Total assets | 56,563) | 53,870) | 51,759) | 34,786) | 33,093) | 30,886) | |
| Profitability Ratio | |||||||
| ROA1 | 3.99% | 2.74% | 2.44% | 3.85% | 4.24% | 3.89% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Abbott Laboratories | — | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | — | |
| 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
ROA = 100 × Net income attributable to McKesson Corporation ÷ Total assets
= 100 × 2,258 ÷ 56,563 = 3.99%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | McKesson Corp. ROA improved from 2014 to 2015 and from 2015 to 2016. |