Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
Paying user area
Try for free
McKesson Corp. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to McKesson Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
McKesson Corp., consolidated cash flow statement
US$ in millions
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).
- Net Income
- Net income displayed a generally positive trend, rising from $1,202 million in 2011 to $2,310 million in 2016, with a temporary dip in 2014. This indicates enhanced profitability over the period, with a notable surge in the final year.
- Depreciation and Amortization
- Depreciation increased steadily from $139 million in 2011 to a peak of $306 million in 2015, then slightly declined in 2016. Amortization followed a similar upward trajectory, reaching $711 million in 2015 before decreasing to $604 million in 2016. These trends reflect growing capital expenditures and intangible asset investments over time, with some moderation in the latest year.
- Deferred Taxes
- Deferred taxes showed significant fluctuations, peaking at $606 million in 2013 but dropping sharply to $16 million in 2014, followed by smaller fluctuations thereafter. This volatility suggests changes in tax positions or timing of tax recognition.
- Share-Based Compensation Expense
- This expense gradually increased from $137 million in 2011 to a peak of $174 million in 2015 before declining to $123 million in 2016, indicating some cost containment or changes in compensation structure in the latter year.
- Non-Cash Items and Adjustments
- Adjustments to reconcile to net cash provided by operating activities climbed from $863 million in 2011 to a high of $1,987 million in 2015, then decreased in 2016, reflecting variable non-cash expenses and working capital timing.
- Working Capital Changes
- Receivables and inventories experienced substantial volatility. Receivables reversed from negative balances in early years to large negative values in 2015 and 2016, indicating collections improvement or reduced sales on credit. Inventories followed a similar pattern, increasing negative balances before partially recovering in 2016, suggesting inventory management challenges. Drafts and accounts payable showed strong increases in 2014 and 2015, partially decreasing in 2016, signaling varied supplier payment strategies.
- Net Cash Provided by Operating Activities
- Operating cash flow improved consistently, rising from $2,338 million in 2011 to $3,672 million in 2016, demonstrating strong cash generation capacity.
- Investing Activities
- Cash used in investing activities fluctuated markedly, with large outflows especially in 2014 (-$5,046 million), driven largely by acquisitions. Property, plant, and equipment payments trended upward, indicating ongoing investment, while acquisition spending was erratic but generally high in early years, then moderated substantially after 2014.
- Financing Activities
- Financing cash flows were volatile, shifting from outflows in early years to a significant inflow in 2014, followed by substantial outflows in 2015 and 2016. This pattern reflects variable borrowing and repayment activity, including significant share repurchases and debt repayments, particularly in the later years. Share repurchases showed a sharp increase again in 2016.
- Liquidity and Cash Position
- Cash and cash equivalents fluctuated over the period, declining initially to a low in 2013 ($2,456 million), then increasing to a peak in 2015 ($5,341 million) before falling again in 2016 to $4,048 million. The net increase/decrease in cash reflected these trends, influenced by strong operating cash inflows offset by investing and financing outflows.
- Overall Insights
- The company demonstrated strong profitability and cash flow from operations over the period. Significant acquisition spending and investment activities occurred, particularly in 2014, impacting cash outflows. Financing activities were marked by debt issuance and repayments alongside substantial share repurchases, showing active capital structure management. Working capital components showed considerable volatility, suggesting dynamic operational adjustments. The cash position remained robust despite fluctuations, underpinned by strong operational performance.