Name: McKesson Corp. (NYSE:MCK) | Common-Size Assets
Creator: Stock Analysis on Net

Common-Size Balance Sheet: Assets

McKesson Corp., common-size consolidated balance sheet: assets

	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
Cash and cash equivalents	7.16%	9.91%	8.10%	7.06%	9.52%	11.69%
Receivables, net	31.79%	29.54%	27.42%	28.68%	30.15%	29.74%
Inventories, net	27.11%	26.54%	25.71%	29.71%	30.44%	29.87%
Prepaid expenses and other	1.90%	2.08%	1.70%	1.16%	1.22%	1.08%
Current assets	67.95%	68.07%	62.93%	66.61%	71.32%	72.39%
Property, plant and equipment, net	4.03%	3.80%	4.29%	3.80%	3.15%	3.21%
Goodwill	17.30%	18.22%	19.18%	18.41%	15.21%	14.13%
Intangible assets, net	5.34%	6.39%	9.70%	6.53%	5.29%	4.71%
Other noncurrent assets	5.38%	3.52%	3.89%	4.66%	5.03%	5.56%
Noncurrent assets	32.05%	31.93%	37.07%	33.39%	28.68%	27.61%
Total assets	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%

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).

The asset composition reflects a gradual shift from current assets toward noncurrent assets over the six-year period. Total current assets, which constituted the majority of the asset base, decreased from 72.39% in 2011 to 67.95% in 2016. Conversely, noncurrent assets grew from 27.61% to 32.05% during the same timeframe, peaking at 37.07% in 2014.

Liquidity and Working Capital Trends: Cash and cash equivalents exhibited a general downward trend, falling from 11.69% of total assets in 2011 to 7.16% in 2016, indicating a reduced proportion of highly liquid assets. Receivables, net, remained a primary component of the asset structure, fluctuating between 27.42% and 31.79%, with a peak observed in 2016. Inventories, net, showed a overall decline from 29.87% in 2011 to 27.11% in 2016, with the most significant contraction occurring between 2013 and 2014.
Fixed and Intangible Asset Analysis: Property, plant and equipment, net, remained a marginal portion of total assets, consistently staying between 3.15% and 4.29%. Significant volatility is observed in intangible assets and goodwill. Goodwill increased from 14.13% in 2011 to a peak of 19.18% in 2014 before moderating to 17.30% by 2016. Similarly, intangible assets, net, rose from 4.71% in 2011 to a peak of 9.70% in 2014, subsequently declining to 5.34% in 2016. These patterns suggest a period of expanded investment in intangible value and potential acquisitions around 2014.
Overall Asset Structure: The organization maintains an asset-heavy profile centered on working capital, specifically receivables and inventories, which together consistently represented over 50% of total assets. The expansion of the noncurrent asset base, particularly through goodwill and intangibles, indicates a strategic shift toward a more complex asset structure compared to the baseline in 2011.

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