Net Profit Margin
since 2005
Calculation
McKesson Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to McKesson Corporation1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2016 | 1.18% | = | 100 | × | 2,258) | ÷ | 190,884) |
| Mar 31, 2015 | 0.82% | = | 100 | × | 1,476) | ÷ | 179,045) |
| Mar 31, 2014 | 0.92% | = | 100 | × | 1,263) | ÷ | 137,609) |
| Mar 31, 2013 | 1.09% | = | 100 | × | 1,338) | ÷ | 122,455) |
| Mar 31, 2012 | 1.14% | = | 100 | × | 1,403) | ÷ | 122,734) |
| Mar 31, 2011 | 1.07% | = | 100 | × | 1,202) | ÷ | 112,084) |
| Mar 31, 2010 | 1.16% | = | 100 | × | 1,263) | ÷ | 108,702) |
| Mar 31, 2009 | 0.77% | = | 100 | × | 823) | ÷ | 106,632) |
| Mar 31, 2008 | 0.97% | = | 100 | × | 990) | ÷ | 101,703) |
| Mar 31, 2007 | 0.98% | = | 100 | × | 913) | ÷ | 92,977) |
| Mar 31, 2006 | 0.85% | = | 100 | × | 751) | ÷ | 88,050) |
| Mar 31, 2005 | -0.19% | = | 100 | × | (157) | ÷ | 80,515) |
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 performance from 2005 to 2016 is characterized by aggressive revenue expansion and a transition from an initial net loss to consistent profitability. While absolute net income grew substantially over the period, the net profit margin remained narrow, reflecting a business model dependent on high volume and slim margins.
- Revenue and Net Income Growth
- A significant upward trend in top-line growth is observed, with revenues increasing from 80,515 million in 2005 to 190,884 million by 2016. Net income mirrored this growth, recovering from a loss of 157 million in 2005 to reach a peak of 2,258 million in 2016. This indicates a strong capacity for scaling operations over the eleven-year horizon.
- Net Profit Margin Stability and Volatility
- The net profit margin exhibited low volatility after 2005, generally fluctuating within a tight range between 0.77% and 1.18%. Following the initial recovery in 2006 (0.85%), the margin peaked in 2010 at 1.16% before experiencing a gradual decline to 0.82% by 2015. A sharp recovery occurred in 2016, with the margin reaching its period high of 1.18%.
- Analysis of Profitability Drivers
- The data suggests that profitability is driven by operational scale rather than margin expansion. Despite the more than twofold increase in revenue between 2005 and 2016, the net profit margin did not show a corresponding long-term upward trend, remaining consistently near the 1% threshold. This pattern is indicative of a high-volume distribution environment where competitive pricing limits the ability to expand margins significantly.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
McKesson Corp., net profit margin, long-term trends, comparison to competitors
| McKesson Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Mar 31, 2016 | 1.18% | 6.71% | 2.93% | 27.21% | 12.27% | 3.81% |
| Mar 31, 2015 | 0.82% | 21.68% | 3.27% | 24.69% | 13.20% | 3.72% |
| Mar 31, 2014 | 0.92% | 11.28% | 3.52% | 19.65% | 18.02% | 4.33% |
| Mar 31, 2013 | 1.09% | 11.79% | 3.55% | 29.62% | 20.90% | 4.62% |
| Mar 31, 2012 | 1.14% | 14.95% | 4.37% | 30.14% | 22.35% | 5.03% |
| Mar 31, 2011 | 1.07% | 12.17% | 4.42% | 28.17% | 19.43% | 5.08% |
| Mar 31, 2010 | 1.16% | 13.15% | 4.99% | 27.02% | 19.59% | 4.95% |
| Mar 31, 2009 | 0.77% | 18.68% | 7.80% | 22.11% | 14.86% | 4.42% |
| Mar 31, 2008 | 0.97% | 16.53% | 4.04% | 23.35% | 16.51% | 3.70% |
| Mar 31, 2007 | 0.98% | 13.92% | 5.56% | 24.06% | 22.78% | 6.26% |
| Mar 31, 2006 | 0.85% | 7.64% | 5.52% | 19.33% | 22.55% | 5.89% |
| Mar 31, 2005 | -0.19% | 15.10% | 5.53% | 41.41% | 17.94% | 7.36% |
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., net profit margin, long-term trends, comparison to sector (health care equipment & services)
| McKesson Corp. | Health Care Equipment & Services | |
|---|---|---|
| Mar 31, 2016 | 1.18% | 4.73% |
| Mar 31, 2015 | 0.82% | 5.78% |
| Mar 31, 2014 | 0.92% | 5.76% |
| Mar 31, 2013 | 1.09% | 6.37% |
| Mar 31, 2012 | 1.14% | 8.05% |
| Mar 31, 2011 | 1.07% | 7.40% |
| Mar 31, 2010 | 1.16% | 7.67% |
| Mar 31, 2009 | 0.77% | 8.63% |
| Mar 31, 2008 | 0.97% | 6.88% |
| Mar 31, 2007 | 0.98% | 8.40% |
| Mar 31, 2006 | 0.85% | 7.20% |
| Mar 31, 2005 | -0.19% | 9.04% |
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., net profit margin, long-term trends, comparison to industry (health care)
| McKesson Corp. | Health Care | |
|---|---|---|
| Mar 31, 2016 | 1.18% | 12.80% |
| Mar 31, 2015 | 0.82% | 13.94% |
| Mar 31, 2014 | 0.92% | 14.40% |
| Mar 31, 2013 | 1.09% | 15.04% |
| Mar 31, 2012 | 1.14% | 13.92% |
| Mar 31, 2011 | 1.07% | 12.06% |
| Mar 31, 2010 | 1.16% | 11.90% |
| Mar 31, 2009 | 0.77% | 17.77% |
| Mar 31, 2008 | 0.97% | 13.00% |
| Mar 31, 2007 | 0.98% | 12.52% |
| Mar 31, 2006 | 0.85% | 15.30% |
| Mar 31, 2005 | -0.19% | 14.61% |
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).