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.

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).

The financial data reveals a general upward trend in key revenue and profitability metrics over the examined period, with some fluctuations in expenses and other income statement components.

Revenues and Cost of Sales: Revenues increased steadily from US$112,084 million in 2011 to US$190,884 million in 2016, reflecting substantial growth particularly between 2014 and 2015. Correspondingly, cost of sales also rose significantly from US$106,114 million to US$179,468 million over the same period, maintaining a relatively consistent gross margin.
Gross Profit: Gross profit showed a consistent increase, rising from US$5,970 million in 2011 to US$11,416 million in 2016, indicating effective revenue growth alongside controlled cost increases.
Operating Expenses: Selling, distribution and administrative expenses followed an increasing trend from US$3,529 million in 2011, peaking in 2015 at US$7,901 million, before declining somewhat to US$7,276 million in 2016. Research and development expenses remained relatively stable around US$400 million annually, contributing minimally to total expenses. Other charges such as restructuring and claim/litigation charges appeared irregular, with a restructuring charge of US$203 million recorded only in 2016 and fluctuation in claim and litigation charges between US$72 million and US$213 million over the years.
Operating Income: Operating income experienced steady growth from US$1,821 million in 2011 to US$3,545 million in 2016, demonstrating improved operational efficiency and profitability.
Other Income and Expenses: Interest income remained relatively stable, fluctuating slightly around US$18–23 million. Equity earnings showed variable performance with minor positive contributions beginning in 2012. Other income items remained modest but positive, peaking at US$63 million in 2015. Interest expense increased steadily from US$222 million in 2011 to US$374 million in 2015, followed by a slight decrease in 2016.
Income Before Taxes and Net Income: Income from continuing operations before income taxes rose from US$1,635 million in 2011 to US$3,250 million in 2016. Income tax expense increased correspondingly but at a lower rate, resulting in growth of income from continuing operations from US$1,130 million to US$2,342 million. Net income attributable to the corporation reflected a generally positive trajectory, advancing from US$1,202 million in 2011 to US$2,258 million in 2016, despite some variability owing to discontinued operations and noncontrolling interests.
Discontinued Operations and Noncontrolling Interests: Income from discontinued operations showed volatility, including losses in 2014 and 2015. Net income attributable to noncontrolling interests was negligible or minor but resulted in negative amounts in later years, slightly reducing net income attributable to the corporation.

Overall, the figures suggest strong revenue and profit growth accompanied by rising but well-managed expenses. The improvements in operating income and net income indicate effective cost control and operational performance, notwithstanding occasional charges related to restructuring, claims, and discontinued activities. Interest expenses rose but were offset by growing operating profitability. The company demonstrated resilience and expansion capability during the period under review.

Download chart

McKesson Corp. (NYSE:MCK)

Income Statement