Current Ratio
since 2005
Calculation
McKesson Corp., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Mar 31, 2016 | 1.10 | = | 38,437) | ÷ | 35,071) |
| Mar 31, 2015 | 1.09 | = | 36,670) | ÷ | 33,497) |
| Mar 31, 2014 | 1.10 | = | 32,573) | ÷ | 29,501) |
| Mar 31, 2013 | 1.08 | = | 23,170) | ÷ | 21,357) |
| Mar 31, 2012 | 1.09 | = | 23,603) | ÷ | 21,686) |
| Mar 31, 2011 | 1.19 | = | 22,357) | ÷ | 18,726) |
| Mar 31, 2010 | 1.26 | = | 21,504) | ÷ | 17,012) |
| Mar 31, 2009 | 1.20 | = | 18,671) | ÷ | 15,606) |
| Mar 31, 2008 | 1.16 | = | 17,786) | ÷ | 15,348) |
| Mar 31, 2007 | 1.18 | = | 17,856) | ÷ | 15,126) |
| Mar 31, 2006 | 1.25 | = | 16,919) | ÷ | 13,515) |
| Mar 31, 2005 | 1.30 | = | 15,332) | ÷ | 11,793) |
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), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$ in millions
An analysis of the financial position from March 31, 2005, to March 31, 2016, reveals a significant expansion in the scale of both current assets and current liabilities, while the current ratio exhibited a general downward trend before stabilizing.
- Growth in Working Capital Components
- Current assets grew from 15,332 million US$ in 2005 to 38,437 million US$ by 2016. This growth was mirrored by current liabilities, which increased from 11,793 million US$ to 35,071 million US$ over the same period. A notable surge in both metrics occurred between March 31, 2013, and March 31, 2014, where current assets increased by approximately 40% and current liabilities increased by approximately 38%.
- Current Ratio Trajectory
- The current ratio began at 1.30 in 2005 and experienced a gradual decline through 2008, reaching 1.16. A brief recovery occurred between 2009 and 2010, peaking at 1.26, before entering another period of decline that bottomed out at 1.08 in 2013. From 2014 to 2016, the ratio stabilized, fluctuating narrowly between 1.09 and 1.10.
- Liquidity and Solvency Observations
- Throughout the entire twelve-year period, the current ratio remained consistently above 1.0, indicating that current assets were always sufficient to cover short-term obligations. However, the narrowing of the margin from 1.30 to approximately 1.10 suggests a tighter liquidity position and a more aggressive management of working capital over time.
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Comparison to Competitors
McKesson Corp., current ratio, long-term trends, comparison to competitors
| McKesson Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Mar 31, 2016 | 1.10 | 4.02 | 1.61 | 5.45 | 3.29 | 0.69 |
| Mar 31, 2015 | 1.09 | 1.54 | 1.62 | 4.46 | 3.36 | 0.74 |
| Mar 31, 2014 | 1.10 | 1.45 | 1.72 | 3.69 | 3.82 | 0.77 |
| Mar 31, 2013 | 1.08 | 2.02 | 1.82 | 5.07 | 4.57 | 0.73 |
| Mar 31, 2012 | 1.09 | 2.36 | 1.78 | 4.71 | 1.62 | 0.78 |
| Mar 31, 2011 | 1.19 | 1.54 | 1.71 | 4.57 | 1.93 | 0.85 |
| Mar 31, 2010 | 1.26 | 1.29 | 1.87 | 4.66 | 1.92 | 0.78 |
| Mar 31, 2009 | 1.20 | 1.79 | 1.91 | 4.18 | 2.37 | 0.82 |
| Mar 31, 2008 | 1.16 | 1.47 | 0.81 | 4.28 | 2.07 | 0.76 |
| Mar 31, 2007 | 1.18 | 1.54 | 0.91 | 4.63 | 3.09 | 0.84 |
| Mar 31, 2006 | 1.25 | 0.94 | 0.77 | 4.64 | 2.36 | 0.87 |
| Mar 31, 2005 | 1.30 | 1.54 | 1.75 | 3.60 | 2.20 | 0.64 |
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), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Sector (Health Care Equipment & Services)
McKesson Corp., current ratio, long-term trends, comparison to sector (health care equipment & services)
| McKesson Corp. | Health Care Equipment & Services | |
|---|---|---|
| Mar 31, 2016 | 1.10 | 1.43 |
| Mar 31, 2015 | 1.09 | 1.36 |
| Mar 31, 2014 | 1.10 | 1.43 |
| Mar 31, 2013 | 1.08 | 1.54 |
| Mar 31, 2012 | 1.09 | 1.47 |
| Mar 31, 2011 | 1.19 | 1.36 |
| Mar 31, 2010 | 1.26 | 1.29 |
| Mar 31, 2009 | 1.20 | 1.46 |
| Mar 31, 2008 | 1.16 | 1.04 |
| Mar 31, 2007 | 1.18 | 1.14 |
| Mar 31, 2006 | 1.25 | 0.99 |
| Mar 31, 2005 | 1.30 | 1.31 |
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), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Industry (Health Care)
McKesson Corp., current ratio, long-term trends, comparison to industry (health care)
| McKesson Corp. | Health Care | |
|---|---|---|
| Mar 31, 2016 | 1.10 | 1.73 |
| Mar 31, 2015 | 1.09 | 1.70 |
| Mar 31, 2014 | 1.10 | 1.92 |
| Mar 31, 2013 | 1.08 | 1.96 |
| Mar 31, 2012 | 1.09 | 1.84 |
| Mar 31, 2011 | 1.19 | 1.94 |
| Mar 31, 2010 | 1.26 | 1.81 |
| Mar 31, 2009 | 1.20 | 1.78 |
| Mar 31, 2008 | 1.16 | 1.44 |
| Mar 31, 2007 | 1.18 | 1.53 |
| Mar 31, 2006 | 1.25 | 1.39 |
| Mar 31, 2005 | 1.30 | 1.63 |
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), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).