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

Income Statement
Quarterly Data

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 (quarterly data)

US$ in millions

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	49,957)	49,733)	46,678)	47,899)	48,761)	47,546)	44,925)	46,484)	44,160)	43,476)	38,141)	34,306)	32,954)	32,208)	30,620)	31,187)	29,850)	30,798)	31,699)	30,839)	30,216)	29,980)	28,853)	28,247)	27,534)	27,450)
Cost of sales	(47,201)	(46,826)	(43,826)	(45,027)	(45,917)	(44,698)	(42,008)	(43,586)	(41,296)	(40,744)	(35,601)	(32,466)	(30,945)	(30,288)	(28,624)	(29,519)	(28,130)	(29,198)	(29,854)	(29,273)	(28,569)	(28,471)	(27,102)	(26,786)	(26,168)	(26,058)
Gross profit	2,756)	2,907)	2,852)	2,872)	2,844)	2,848)	2,917)	2,898)	2,864)	2,732)	2,540)	1,840)	2,009)	1,920)	1,996)	1,668)	1,720)	1,600)	1,845)	1,566)	1,647)	1,509)	1,751)	1,461)	1,366)	1,392)
Operating expenses	(1,886)	(1,935)	(2,112)	(1,952)	(1,890)	(1,917)	(2,217)	(2,098)	(2,077)	(2,051)	(1,984)	(1,355)	(1,330)	(1,273)	(1,356)	(1,183)	(1,109)	(1,102)	(1,138)	(1,074)	(1,169)	(1,037)	(1,128)	(1,154)	(949)	(918)
Goodwill impairment charge	(290)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Gain on business combination	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	81)	—)	—)	—)	—)	—)	—)	—)	—)
Operating income	580)	972)	740)	920)	954)	931)	700)	800)	787)	681)	556)	485)	679)	647)	640)	485)	611)	579)	707)	492)	478)	472)	623)	307)	417)	474)
Other income (loss), net	23)	19)	15)	13)	17)	13)	10)	12)	22)	19)	25)	(8)	9)	6)	7)	10)	10)	8)	9)	(2)	6)	8)	17)	7)	3)	9)
Impairment of an equity investment	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(191)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Interest expense	(78)	(79)	(86)	(87)	(91)	(89)	(90)	(93)	(95)	(96)	(116)	(69)	(59)	(59)	(70)	(59)	(55)	(56)	(59)	(64)	(64)	(64)	(82)	(53)	(44)	(43)
Income from continuing operations before income taxes	525)	912)	669)	846)	880)	855)	620)	719)	714)	604)	465)	408)	629)	594)	386)	436)	566)	531)	657)	426)	420)	416)	558)	261)	376)	440)
Income tax expense	(200)	(239)	(204)	(204)	(244)	(256)	(209)	(198)	(223)	(185)	(103)	(252)	(213)	(174)	(127)	(138)	(165)	(151)	(136)	(126)	(124)	(130)	(136)	(106)	(121)	(142)
Income from continuing operations	325)	673)	465)	642)	636)	599)	411)	521)	491)	419)	362)	156)	416)	420)	259)	298)	401)	380)	521)	300)	296)	286)	422)	155)	255)	298)
Income (loss) from discontinued operations, net of tax	(1)	(113)	(21)	5)	(6)	(10)	(267)	(10)	(14)	(8)	4)	(92)	(12)	4)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	72)	—)
Net income	324)	560)	444)	647)	630)	589)	144)	511)	477)	411)	366)	64)	404)	424)	259)	298)	401)	380)	521)	300)	296)	286)	422)	155)	327)	298)
Net (income) loss attributable to noncontrolling interests	(17)	(18)	(13)	(13)	(13)	(13)	(12)	(39)	(8)	(8)	5)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Net income attributable to McKesson Corporation	307)	542)	431)	634)	617)	576)	132)	472)	469)	403)	371)	64)	404)	424)	259)	298)	401)	380)	521)	300)	296)	286)	422)	155)	327)	298)

The financial data exhibits a significant expansion in top-line growth, characterized by a steady increase in revenues from June 2010 through March 2014, followed by a sharp acceleration. Revenues grew from 27,450 million USD in June 2010 to 49,957 million USD by September 2016. A pivotal shift occurred between March 2014 and June 2014, where quarterly revenue jumped from 38,141 million USD to 43,476 million USD, establishing a new baseline of revenue exceeding 44,000 million USD for most subsequent quarters.

Gross Profit and Margin Analysis: Gross profit trends largely mirrored revenue growth but at a lower rate of acceleration. Gross profit increased from approximately 1,392 million USD in June 2010 to a peak of 2,917 million USD in March 2015. Despite the massive increase in total revenue, the gross profit margin remained consistently tight, indicating a high-volume, low-margin business model where cost of sales consumes the vast majority of revenue.
Operating Performance and Expense Management: Operating expenses scaled upward in tandem with the revenue surge. Expenses remained relatively stable around 1,100 million USD per quarter until March 2014, after which they climbed to a range between 1,800 million USD and 2,200 million USD. Operating income showed cyclical volatility, peaking at 972 million USD in June 2016 before dropping to 580 million USD in September 2016, a decline primarily attributable to a 290 million USD goodwill impairment charge.
Net Income and Volatility Factors: Net income attributable to the corporation experienced significant fluctuations due to non-recurring items. While operational profitability generally improved over the period, the bottom line was heavily impacted by discontinued operations and impairments. For instance, a substantial loss of 267 million USD from discontinued operations in March 2015 severely depressed the net income for that quarter to 132 million USD. Conversely, peak net income reached 634 million USD in December 2015.
Interest and Non-Operating Costs: Interest expenses showed a general upward trend, rising from roughly 43 million USD in 2010 to peaking at 116 million USD in March 2014. This increase suggests a higher debt load associated with the company's expansion phases. Other income remained a minor contributor to overall profitability, typically fluctuating between 5 million USD and 25 million USD per quarter.

Overall, the period is marked by a transition to a much larger scale of operations. While the company successfully grew its revenue and operating income, the net profitability was subject to significant volatility caused by strategic adjustments, including the divestiture of discontinued operations and periodic asset impairments.

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McKesson Corp. (NYSE:MCK)

Income StatementQuarterly Data

Income Statement
Quarterly Data