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
- Net Income Trend
- The net income attributable to the corporation experienced significant fluctuations over the analyzed period. Initially, in 2005, there was a net loss of 157 million US dollars, but from 2006 onwards, the company reported positive net income annually. Net income showed a general upward trend, with notable growth between 2009 and 2010, rising from 823 million to 1263 million US dollars, and peaked in 2016 at 2258 million US dollars. Despite some variability, the overall trajectory indicates improving profitability over the period.
- Revenue Growth
- Revenues demonstrated consistent expansion throughout the years. Starting at approximately 80.5 billion US dollars in 2005, revenues increased steadily year-over-year, reaching over 190 billion US dollars by 2016. The growth rate was generally stable, with particularly significant increments observed between 2013 and 2015, where revenues jumped from around 122 billion to 179 billion US dollars. This sustained increase in revenue suggests effective business scaling and market penetration.
- Net Profit Margin
- The net profit margin exhibited variability but remained positive for the majority of the period after 2005. Following the negative margin of -0.19% in 2005, margins improved to hover around 0.85% to 1.18% from 2006 through 2016. Notably, margins peaked at 1.18% in 2016, indicating enhanced efficiency or profitability relative to revenue. There was a minor decline in margin around 2013 and 2014, dropping to approximately 0.82%-0.92%, but this was followed by a recovery by 2016.
- Overall Analysis
- The financial data indicates robust growth in both revenues and net income, with the company turning around from an initial net loss to sustained profitability. The simultaneous rise in revenues and net income, accompanied by generally stable or improving net profit margins, suggests effective cost management and operational efficiency. The upward trends in key financial metrics point to successful strategic execution and expanding market share during the years under review.
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).