Stock Analysis on Net

McKesson Corp. (NYSE:MCK)

This company has been moved to the archive! The financial data has not been updated since October 27, 2016.

Debt to Equity 
since 2005

Microsoft Excel

Calculation

McKesson Corp., debt to equity, long-term trends, calculation

Microsoft Excel

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


The financial data exhibits significant fluctuations in the company’s capital structure over the analyzed period. Notably, the total debt demonstrates an overall upward trend from 2005 through 2014, with some periods of pronounced increases. Starting at $1,211 million in 2005, debt peaks notably in 2014 at $10,719 million, before declining to $8,154 million by 2016.

Equity levels generally show incremental growth, albeit with some variability. Initially, stockholders’ equity rises from $5,275 million in 2005 to a maximum of $8,522 million in 2014; however, this is followed by a small dip in 2015 and a rebound in 2016 to $8,924 million, indicating measured strengthening of the equity base towards the end of the period.

The debt-to-equity ratio mirrors these trends and provides insight into leverage dynamics. This ratio remains relatively low and stable in the early years, fluctuating between 0.17 and 0.41 until 2010. From 2011 onwards, a marked increase is observed, peaking at 1.26 in 2013, indicating a significant rise in debt relative to equity. In the final years, the ratio falls to 0.91 by 2016, reflecting some deleveraging or equity growth.

Total Debt
A steady and substantial increase is noted from 2005 to 2014, with more than eightfold growth, followed by a reduction during the last two fiscal years analyzed.
Stockholders’ Equity
Equity grows moderately throughout most years, with a peak in 2014, slight decline in 2015, and recovery in 2016, suggesting consistent, albeit uneven, equity financing.
Debt to Equity Ratio
Leverage was low to moderate in the first half of the period but escalated sharply starting in 2011, surpassing parity in 2013, which implies increased reliance on debt financing before a partial correction.

Overall, the company has experienced a strategic shift towards greater leverage, particularly evident in the sharp rise in debt and the debt-to-equity ratio during the early 2010s, possibly to support growth or acquisitions. The later reduction in debt and ratio may indicate efforts to manage financial risk or improve the balance sheet structure. Equity has shown resilience, underpinning the company’s financing capacity despite fluctuations.


Comparison to Competitors

McKesson Corp., debt to equity, long-term trends, comparison to competitors

Microsoft Excel

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)

Microsoft Excel

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)

Microsoft Excel

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).