Analysis of Reportable Segments
McKesson Corp. operates in 2 segments: Distribution Solutions and Technology Solutions.
Segment Profit Margin
McKesson Corp., profit margin by reportable segment
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 1.89% | 1.73% | 1.83% | 1.85% | 1.86% | 1.74% |
| Technology Solutions | 17.99% | 14.27% | 12.16% | 8.73% | 11.00% | 9.42% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Distribution Solutions | Distribution Solutions segment profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
| Technology Solutions | Technology Solutions segment profit margin ratio improved from 2014 to 2015 and from 2015 to 2016. |
Segment Profit Margin: Distribution Solutions
McKesson Corp.; Distribution Solutions; segment profit margin calculation
| 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 profit | 3,553) | 3,047) | 2,461) | 2,197) | 2,219) | 1,897) |
| Revenues | 187,999) | 175,976) | 134,426) | 119,054) | 119,424) | 108,889) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 1.89% | 1.73% | 1.83% | 1.85% | 1.86% | 1.74% |
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
Segment profit margin = 100 × Operating profit ÷ Revenues
= 100 × 3,553 ÷ 187,999 = 1.89%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Distribution Solutions | Distribution Solutions segment profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
Segment Profit Margin: Technology Solutions
McKesson Corp.; Technology Solutions; segment profit margin calculation
| 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 profit | 519) | 438) | 387) | 297) | 364) | 301) |
| Revenues | 2,885) | 3,069) | 3,183) | 3,401) | 3,310) | 3,195) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 17.99% | 14.27% | 12.16% | 8.73% | 11.00% | 9.42% |
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
Segment profit margin = 100 × Operating profit ÷ Revenues
= 100 × 519 ÷ 2,885 = 17.99%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Technology Solutions | Technology Solutions segment profit margin ratio improved from 2014 to 2015 and from 2015 to 2016. |
Segment Return on Assets (Segment ROA)
McKesson Corp., ROA by reportable segment
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 7.55% | 6.93% | 5.76% | 8.05% | 8.75% | 8.25% |
| Technology Solutions | 16.89% | 13.35% | 11.64% | 7.76% | 10.18% | 8.59% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Distribution Solutions | Distribution Solutions segment ROA improved from 2014 to 2015 and from 2015 to 2016. |
| Technology Solutions | Technology Solutions segment ROA improved from 2014 to 2015 and from 2015 to 2016. |
Segment ROA: Distribution Solutions
McKesson Corp.; Distribution Solutions; segment ROA calculation
| 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 profit | 3,553) | 3,047) | 2,461) | 2,197) | 2,219) | 1,897) |
| Segment assets | 47,088) | 43,982) | 42,758) | 27,307) | 25,374) | 22,983) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 7.55% | 6.93% | 5.76% | 8.05% | 8.75% | 8.25% |
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
Segment ROA = 100 × Operating profit ÷ Segment assets
= 100 × 3,553 ÷ 47,088 = 7.55%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Distribution Solutions | Distribution Solutions segment ROA improved from 2014 to 2015 and from 2015 to 2016. |
Segment ROA: Technology Solutions
McKesson Corp.; Technology Solutions; segment ROA calculation
| 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 profit | 519) | 438) | 387) | 297) | 364) | 301) |
| Segment assets | 3,072) | 3,281) | 3,324) | 3,829) | 3,575) | 3,504) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 16.89% | 13.35% | 11.64% | 7.76% | 10.18% | 8.59% |
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
Segment ROA = 100 × Operating profit ÷ Segment assets
= 100 × 519 ÷ 3,072 = 16.89%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Technology Solutions | Technology Solutions segment ROA improved from 2014 to 2015 and from 2015 to 2016. |
Segment Asset Turnover
McKesson Corp., asset turnover by reportable segment
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 3.99 | 4.00 | 3.14 | 4.36 | 4.71 | 4.74 |
| Technology Solutions | 0.94 | 0.94 | 0.96 | 0.89 | 0.93 | 0.91 |
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).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Distribution Solutions | Distribution Solutions segment asset turnover ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016. |
| Technology Solutions | Technology Solutions segment asset turnover ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Segment Asset Turnover: Distribution Solutions
McKesson Corp.; Distribution Solutions; segment asset turnover calculation
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 187,999) | 175,976) | 134,426) | 119,054) | 119,424) | 108,889) |
| Segment assets | 47,088) | 43,982) | 42,758) | 27,307) | 25,374) | 22,983) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 3.99 | 4.00 | 3.14 | 4.36 | 4.71 | 4.74 |
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
Segment asset turnover = Revenues ÷ Segment assets
= 187,999 ÷ 47,088 = 3.99
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Distribution Solutions | Distribution Solutions segment asset turnover ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016. |
Segment Asset Turnover: Technology Solutions
McKesson Corp.; Technology Solutions; segment asset turnover calculation
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 2,885) | 3,069) | 3,183) | 3,401) | 3,310) | 3,195) |
| Segment assets | 3,072) | 3,281) | 3,324) | 3,829) | 3,575) | 3,504) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.94 | 0.94 | 0.96 | 0.89 | 0.93 | 0.91 |
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
Segment asset turnover = Revenues ÷ Segment assets
= 2,885 ÷ 3,072 = 0.94
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Technology Solutions | Technology Solutions segment asset turnover ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Segment Capital Expenditures to Depreciation
McKesson Corp., capital expenditures to depreciation by reportable segment
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 0.46 | 0.40 | 0.40 | 0.62 | 0.78 | 0.72 |
| Technology Solutions | 0.14 | 0.17 | 0.31 | 0.20 | 0.11 | 0.12 |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Distribution Solutions | Distribution Solutions segment capital expenditures to depreciation ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
| Technology Solutions | Technology Solutions segment capital expenditures to depreciation ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
Segment Capital Expenditures to Depreciation: Distribution Solutions
McKesson Corp.; Distribution Solutions; segment capital expenditures to depreciation calculation
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Expenditures for long-lived assets | 306) | 301) | 180) | 163) | 175) | 162) |
| Depreciation and amortization | 669) | 750) | 448) | 265) | 225) | 225) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.46 | 0.40 | 0.40 | 0.62 | 0.78 | 0.72 |
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
Segment capital expenditures to depreciation = Expenditures for long-lived assets ÷ Depreciation and amortization
= 306 ÷ 669 = 0.46
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Distribution Solutions | Distribution Solutions segment capital expenditures to depreciation ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 exceeding 2014 level. |
Segment Capital Expenditures to Depreciation: Technology Solutions
McKesson Corp.; Technology Solutions; segment capital expenditures to depreciation calculation
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Expenditures for long-lived assets | 15) | 27) | 42) | 42) | 22) | 26) |
| Depreciation and amortization | 107) | 156) | 136) | 206) | 209) | 209) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.14 | 0.17 | 0.31 | 0.20 | 0.11 | 0.12 |
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
Segment capital expenditures to depreciation = Expenditures for long-lived assets ÷ Depreciation and amortization
= 15 ÷ 107 = 0.14
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Technology Solutions | Technology Solutions segment capital expenditures to depreciation ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
Revenues
McKesson Corp., revenues by reportable segment
US$ in millions
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 187,999) | 175,976) | 134,426) | 119,054) | 119,424) | 108,889) |
| Technology Solutions | 2,885) | 3,069) | 3,183) | 3,401) | 3,310) | 3,195) |
| Total | 190,884) | 179,045) | 137,609) | 122,455) | 122,734) | 112,084) |
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).
Operating profit
McKesson Corp., operating profit by reportable segment
US$ in millions
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 3,553) | 3,047) | 2,461) | 2,197) | 2,219) | 1,897) |
| Technology Solutions | 519) | 438) | 387) | 297) | 364) | 301) |
| Total | 4,072) | 3,485) | 2,848) | 2,494) | 2,583) | 2,198) |
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).
Depreciation and amortization
McKesson Corp., depreciation and amortization by reportable segment
US$ in millions
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 669) | 750) | 448) | 265) | 225) | 225) |
| Technology Solutions | 107) | 156) | 136) | 206) | 209) | 209) |
| Corporate | 109) | 111) | 120) | 120) | 117) | 62) |
| Total | 885) | 1,017) | 704) | 591) | 551) | 496) |
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).
Expenditures for long-lived assets
McKesson Corp., expenditures for long-lived assets by reportable segment
US$ in millions
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 306) | 301) | 180) | 163) | 175) | 162) |
| Technology Solutions | 15) | 27) | 42) | 42) | 22) | 26) |
| Corporate | 167) | 48) | 52) | 41) | 28) | 45) |
| Total | 488) | 376) | 274) | 246) | 225) | 233) |
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).
Segment assets
McKesson Corp., segment assets by reportable segment
US$ in millions
| Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | |
|---|---|---|---|---|---|---|
| Distribution Solutions | 47,088) | 43,982) | 42,758) | 27,307) | 25,374) | 22,983) |
| Technology Solutions | 3,072) | 3,281) | 3,324) | 3,829) | 3,575) | 3,504) |
| Total | 50,160) | 47,263) | 46,082) | 31,136) | 28,949) | 26,487) |
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).