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McKesson Corp. (NYSE:MCK)

This company has been moved to the archive! The financial data has not been updated since October 27, 2016.

Common-Size Income Statement
Quarterly Data

McKesson Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: 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
Revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -94.48 -94.15 -93.89 -94.00 -94.17 -94.01 -93.51 -93.77 -93.51 -93.72 -93.34 -94.64 -93.90 -94.04 -93.48 -94.65 -94.24 -94.80 -94.18 -94.92 -94.55 -94.97 -93.93 -94.83 -95.04 -94.93
Gross profit 5.52% 5.85% 6.11% 6.00% 5.83% 5.99% 6.49% 6.23% 6.49% 6.28% 6.66% 5.36% 6.10% 5.96% 6.52% 5.35% 5.76% 5.20% 5.82% 5.08% 5.45% 5.03% 6.07% 5.17% 4.96% 5.07%
Operating expenses -3.78 -3.89 -4.52 -4.08 -3.88 -4.03 -4.93 -4.51 -4.70 -4.72 -5.20 -3.95 -4.04 -3.95 -4.43 -3.79 -3.72 -3.58 -3.59 -3.48 -3.87 -3.46 -3.91 -4.09 -3.45 -3.34
Goodwill impairment charge -0.58 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Gain on business combination 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating income 1.16% 1.95% 1.59% 1.92% 1.96% 1.96% 1.56% 1.72% 1.78% 1.57% 1.46% 1.41% 2.06% 2.01% 2.09% 1.56% 2.05% 1.88% 2.23% 1.60% 1.58% 1.57% 2.16% 1.09% 1.51% 1.73%
Other income (loss), net 0.05 0.04 0.03 0.03 0.03 0.03 0.02 0.03 0.05 0.04 0.07 -0.02 0.03 0.02 0.02 0.03 0.03 0.03 0.03 -0.01 0.02 0.03 0.06 0.02 0.01 0.03
Impairment of an equity investment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest expense -0.16 -0.16 -0.18 -0.18 -0.19 -0.19 -0.20 -0.20 -0.22 -0.22 -0.30 -0.20 -0.18 -0.18 -0.23 -0.19 -0.18 -0.18 -0.19 -0.21 -0.21 -0.21 -0.28 -0.19 -0.16 -0.16
Income from continuing operations before income taxes 1.05% 1.83% 1.43% 1.77% 1.80% 1.80% 1.38% 1.55% 1.62% 1.39% 1.22% 1.19% 1.91% 1.84% 1.26% 1.40% 1.90% 1.72% 2.07% 1.38% 1.39% 1.39% 1.93% 0.92% 1.37% 1.60%
Income tax expense -0.40 -0.48 -0.44 -0.43 -0.50 -0.54 -0.47 -0.43 -0.50 -0.43 -0.27 -0.73 -0.65 -0.54 -0.41 -0.44 -0.55 -0.49 -0.43 -0.41 -0.41 -0.43 -0.47 -0.38 -0.44 -0.52
Income from continuing operations 0.65% 1.35% 1.00% 1.34% 1.30% 1.26% 0.91% 1.12% 1.11% 0.96% 0.95% 0.45% 1.26% 1.30% 0.85% 0.96% 1.34% 1.23% 1.64% 0.97% 0.98% 0.95% 1.46% 0.55% 0.93% 1.09%
Income (loss) from discontinued operations, net of tax 0.00 -0.23 -0.04 0.01 -0.01 -0.02 -0.59 -0.02 -0.03 -0.02 0.01 -0.27 -0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 0.00
Net income 0.65% 1.13% 0.95% 1.35% 1.29% 1.24% 0.32% 1.10% 1.08% 0.95% 0.96% 0.19% 1.23% 1.32% 0.85% 0.96% 1.34% 1.23% 1.64% 0.97% 0.98% 0.95% 1.46% 0.55% 1.19% 1.09%
Net (income) loss attributable to noncontrolling interests -0.03 -0.04 -0.03 -0.03 -0.03 -0.03 -0.03 -0.08 -0.02 -0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net income attributable to McKesson Corporation 0.61% 1.09% 0.92% 1.32% 1.27% 1.21% 0.29% 1.02% 1.06% 0.93% 0.97% 0.19% 1.23% 1.32% 0.85% 0.96% 1.34% 1.23% 1.64% 0.97% 0.98% 0.95% 1.46% 0.55% 1.19% 1.09%

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).

The financial performance from June 2010 through September 2016 is characterized by an extremely thin-margin operational model, where the cost of sales consistently consumes between 93.3% and 95.1% of total revenues.

Gross Profitability Trends
Gross profit margins exhibited a gradual upward trend, evolving from a range of approximately 4.9% to 6.1% during 2010 and 2011 to a peak of 6.66% in March 2014. Although margins remained low, a period of relative strength was observed between 2013 and 2015, during which gross profits frequently exceeded 6% of revenues.
Operating Expense and Income Analysis
Operating expenses fluctuated between 3.3% and 5.2% of revenues. The resulting operating income margin remained volatile and slim, generally ranging between 1.1% and 2.2%. A notable increase in operating expenses occurred in March 2014 at 5.20%, which significantly offset the period's high gross profit margin, illustrating the high sensitivity of operating income to shifts in overhead costs.
Non-Operating Items and Extraordinary Charges
Interest expenses remained relatively stable, typically averaging between 0.16% and 0.22% of revenues. Periodic volatility was introduced by non-recurring items, specifically a gain on business combination in June 2012 (0.26%), an impairment of an equity investment in March 2013 (-0.62%), and a goodwill impairment charge in September 2016 (-0.58%).
Net Income and Bottom-Line Stability
Net income attributable to the corporation fluctuated between a low of 0.29% in March 2015 and a high of 1.64% in March 2012. Profitability was markedly impacted by discontinued operations, most notably in March 2015, where a loss of 0.59% of revenues contributed to a sharp contraction in net profitability for that quarter.

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