Name: McKesson Corp. (NYSE:MCK) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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McKesson Corp., consolidated income statement

US$ in millions

12 months ended:	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
Revenues	190,884)	179,045)	137,609)	122,455)	122,734)	112,084)
Cost of sales	(179,468)	(167,634)	(129,300)	(115,471)	(116,167)	(106,114)
Gross profit	11,416)	11,411)	8,309)	6,984)	6,567)	5,970)
Selling, distribution and administrative expenses	(7,276)	(7,901)	(5,418)	(4,198)	(3,829)	(3,529)
Research and development	(392)	(392)	(456)	(480)	(440)	(407)
Restructuring charges	(203)	—)	—)	—)	—)	—)
Claim and litigation charges	—)	(150)	(68)	(72)	(149)	(213)
Gain on business combination	—)	—)	—)	81)	—)	—)
Operating expenses	(7,871)	(8,443)	(5,942)	(4,669)	(4,418)	(4,149)
Operating income	3,545)	2,968)	2,367)	2,315)	2,149)	1,821)
Interest income	18)	20)	23)	22)	19)	18)
Equity in earnings (loss), net	15)	12)	(3)	3)	9)	(6)
Other, net	25)	31)	12)	10)	(7)	24)
Other income, net	58)	63)	32)	35)	21)	36)
Impairment of an equity investment	—)	—)	—)	(191)	—)	—)
Interest expense	(353)	(374)	(303)	(240)	(251)	(222)
Income from continuing operations before income taxes	3,250)	2,657)	2,096)	1,919)	1,919)	1,635)
Income tax expense	(908)	(815)	(742)	(581)	(516)	(505)
Income from continuing operations	2,342)	1,842)	1,354)	1,338)	1,403)	1,130)
Income (loss) from discontinued operations, net of tax	(32)	(299)	(96)	—)	—)	72)
Net income	2,310)	1,543)	1,258)	1,338)	1,403)	1,202)
Net (income) loss attributable to noncontrolling interests	(52)	(67)	5)	—)	—)	—)
Net income attributable to McKesson Corporation	2,258)	1,476)	1,263)	1,338)	1,403)	1,202)

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).

Revenues exhibited a consistent upward trajectory over the analyzed six-year period, increasing from 112,084 million US dollars in 2011 to 190,884 million US dollars in 2016. A significant acceleration in growth occurred between 2014 and 2015, where revenues rose by approximately 30% in a single fiscal year. This expansion in top-line performance was mirrored by a corresponding increase in cost of sales, reflecting a high-volume, low-margin operational structure.

Gross Profitability and Margin Trends: Gross profit grew from 5,970 million US dollars in 2011 to 11,416 million US dollars in 2016. While the absolute value of gross profit nearly doubled, the narrow gap between revenues and cost of sales indicates that the company operates with tight gross margins. The most substantial jump in gross profit occurred between 2014 and 2015, correlating with the surge in overall revenues.
Operating Efficiency and Expense Management: Operating income demonstrated steady growth, rising from 1,821 million US dollars in 2011 to 3,545 million US dollars in 2016. Selling, distribution, and administrative expenses increased significantly from 3,529 million US dollars in 2011 to a peak of 7,901 million US dollars in 2015, before decreasing to 7,276 million US dollars in 2016. Research and development spending remained relatively stable, fluctuating within a narrow range between 392 million and 480 million US dollars.
Net Income and Bottom-Line Performance: Net income attributable to McKesson Corporation showed a general upward trend, though it experienced volatility due to non-continuing operations. The value grew from 1,202 million US dollars in 2011 to 2,258 million US dollars in 2016. A notable dip in net income occurred in 2014 and 2015, largely influenced by significant losses from discontinued operations, which peaked at a loss of 299 million US dollars in 2015.
Financial Obligations and Taxation: Interest expenses increased from 222 million US dollars in 2011 to 353 million US dollars in 2016, suggesting an increase in debt levels or higher borrowing costs to support growth. Income tax expenses scaled proportionally with the growth in income from continuing operations, rising from 505 million US dollars in 2011 to 908 million US dollars in 2016.

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