Debt to Equity
since 2005
Calculation
McKesson Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total McKesson Corporation stockholders’ equity1 | |
|---|---|---|---|---|---|
| Mar 31, 2016 | 0.91 | = | 8,154) | ÷ | 8,924) |
| Mar 31, 2015 | 1.23 | = | 9,844) | ÷ | 8,001) |
| Mar 31, 2014 | 1.26 | = | 10,719) | ÷ | 8,522) |
| Mar 31, 2013 | 0.69 | = | 4,873) | ÷ | 7,070) |
| Mar 31, 2012 | 0.58 | = | 3,980) | ÷ | 6,831) |
| Mar 31, 2011 | 0.55 | = | 4,004) | ÷ | 7,220) |
| Mar 31, 2010 | 0.30 | = | 2,296) | ÷ | 7,532) |
| Mar 31, 2009 | 0.41 | = | 2,509) | ÷ | 6,193) |
| Mar 31, 2008 | 0.29 | = | 1,797) | ÷ | 6,121) |
| Mar 31, 2007 | 0.31 | = | 1,958) | ÷ | 6,273) |
| Mar 31, 2006 | 0.17 | = | 991) | ÷ | 5,907) |
| Mar 31, 2005 | 0.23 | = | 1,211) | ÷ | 5,275) |
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
Between 2005 and 2016, a significant evolution in the capital structure is observed, characterized by a transition from a conservative leverage position to a more aggressive debt-funded strategy, followed by a period of moderate deleveraging.
- Total Debt Trajectory
- Total debt remained relatively stable and low between 2005 and 2010, fluctuating between 991 million and 2,509 million USD. A period of acceleration began in 2011, with debt levels rising to 4,004 million USD. The most substantial increase occurred between March 31, 2013, and March 31, 2014, where total debt more than doubled from 4,873 million USD to a peak of 10,719 million USD. Following this peak, a downward trend was observed, with debt decreasing to 8,154 million USD by 2016.
- Stockholders' Equity Growth
- Total stockholders' equity exhibited a consistent long-term upward trend, increasing from 5,275 million USD in 2005 to 8,924 million USD in 2016. While there were minor fluctuations, such as a slight decline in 2012 and 2015, the overall trajectory indicates a steady accumulation of equity over the eleven-year period.
- Debt to Equity Ratio Analysis
- The debt to equity ratio remained below 0.50 for the first six years of the period, reaching its lowest point of 0.17 in 2006. Starting in 2011, the ratio entered a phase of rapid escalation, climbing from 0.55 to a peak of 1.26 in 2014. This peak indicates a shift where total debt exceeded total equity. By March 31, 2016, the ratio declined to 0.91, reflecting a reduction in financial leverage relative to the company's equity base.
The data indicates that the increase in the debt to equity ratio was driven primarily by the surge in total debt rather than a contraction in equity. The sharp spike in 2014 suggests a significant financing event or strategic investment, while the subsequent decline in 2015 and 2016 points toward a period of debt repayment or capital restructuring.
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Comparison to Competitors
McKesson Corp., debt to equity, long-term trends, comparison to competitors
| McKesson Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Mar 31, 2016 | 0.91 | 1.07 | 0.63 | 0.00 | 0.60 | 0.86 |
| Mar 31, 2015 | 1.23 | 0.42 | 0.69 | 0.00 | 0.68 | 0.95 |
| Mar 31, 2014 | 1.26 | 0.36 | 0.62 | 0.00 | 0.61 | 0.54 |
| Mar 31, 2013 | 0.69 | 0.26 | 0.59 | 0.00 | 0.57 | 0.52 |
| Mar 31, 2012 | 0.58 | 0.77 | 0.63 | 0.00 | 0.62 | 0.54 |
| Mar 31, 2011 | 0.55 | 0.63 | 0.42 | 0.00 | 0.62 | 0.41 |
| Mar 31, 2010 | 0.30 | 0.85 | 0.38 | 0.00 | 0.65 | 0.43 |
| Mar 31, 2009 | 0.41 | 0.72 | 0.34 | 0.00 | 0.57 | 0.47 |
| Mar 31, 2008 | 0.29 | 0.65 | 0.41 | 0.00 | 0.60 | 0.62 |
| Mar 31, 2007 | 0.31 | 0.69 | 0.39 | 0.00 | 0.55 | 0.55 |
| Mar 31, 2006 | 0.17 | 0.88 | 0.29 | 0.00 | 0.84 | 0.36 |
| Mar 31, 2005 | 0.23 | 0.46 | 0.27 | 0.00 | 0.23 | 0.40 |
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., debt to equity, long-term trends, comparison to sector (health care equipment & services)
| McKesson Corp. | Health Care Equipment & Services | |
|---|---|---|
| Mar 31, 2016 | 0.91 | 0.72 |
| Mar 31, 2015 | 1.23 | 0.69 |
| Mar 31, 2014 | 1.26 | 0.52 |
| Mar 31, 2013 | 0.69 | 0.47 |
| Mar 31, 2012 | 0.58 | 0.61 |
| Mar 31, 2011 | 0.55 | 0.49 |
| Mar 31, 2010 | 0.30 | 0.55 |
| Mar 31, 2009 | 0.41 | 0.51 |
| Mar 31, 2008 | 0.29 | 0.55 |
| Mar 31, 2007 | 0.31 | 0.53 |
| Mar 31, 2006 | 0.17 | 0.50 |
| Mar 31, 2005 | 0.23 | 0.34 |
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., debt to equity, long-term trends, comparison to industry (health care)
| McKesson Corp. | Health Care | |
|---|---|---|
| Mar 31, 2016 | 0.91 | 0.77 |
| Mar 31, 2015 | 1.23 | 0.69 |
| Mar 31, 2014 | 1.26 | 0.54 |
| Mar 31, 2013 | 0.69 | 0.50 |
| Mar 31, 2012 | 0.58 | 0.54 |
| Mar 31, 2011 | 0.55 | 0.47 |
| Mar 31, 2010 | 0.30 | 0.43 |
| Mar 31, 2009 | 0.41 | 0.42 |
| Mar 31, 2008 | 0.29 | 0.42 |
| Mar 31, 2007 | 0.31 | 0.36 |
| Mar 31, 2006 | 0.17 | 0.32 |
| Mar 31, 2005 | 0.23 | 0.30 |
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).