Operating Profit Margin
since 2005
Calculation
McKesson Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2016 | 1.86% | = | 100 | × | 3,545) | ÷ | 190,884) |
| Mar 31, 2015 | 1.66% | = | 100 | × | 2,968) | ÷ | 179,045) |
| Mar 31, 2014 | 1.72% | = | 100 | × | 2,367) | ÷ | 137,609) |
| Mar 31, 2013 | 1.89% | = | 100 | × | 2,315) | ÷ | 122,455) |
| Mar 31, 2012 | 1.75% | = | 100 | × | 2,149) | ÷ | 122,734) |
| Mar 31, 2011 | 1.62% | = | 100 | × | 1,821) | ÷ | 112,084) |
| Mar 31, 2010 | 1.85% | = | 100 | × | 2,008) | ÷ | 108,702) |
| Mar 31, 2009 | 1.12% | = | 100 | × | 1,196) | ÷ | 106,632) |
| Mar 31, 2008 | 1.45% | = | 100 | × | 1,478) | ÷ | 101,703) |
| Mar 31, 2007 | 1.36% | = | 100 | × | 1,264) | ÷ | 92,977) |
| Mar 31, 2006 | 1.27% | = | 100 | × | 1,114) | ÷ | 88,050) |
| Mar 31, 2005 | -0.24% | = | 100 | × | (191) | ÷ | 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
Between 2005 and 2016, a significant transition occurred from initial operating losses to consistent profitability and substantial revenue expansion. The financial trajectory is characterized by a rapid recovery in the early period followed by a phase of steady, high-volume growth with stabilized operating margins.
- Revenue Growth Trends
- Revenues exhibited a strong and consistent upward trajectory, increasing from 80,515 million USD in 2005 to 190,884 million USD by 2016. A notable acceleration in top-line growth occurred between 2014 and 2016, where revenues rose from 137,609 million USD to 190,884 million USD, indicating a significant expansion in scale.
- Operating Income Performance
- Operating income shifted from a loss of 191 million USD in 2005 to a peak of 3,545 million USD in 2016. While growth was generally positive, a temporary contraction was observed in 2009, where operating income decreased to 1,196 million USD from the previous year's 1,478 million USD. Following this dip, a sustained recovery trend emerged, with income growing annually from 2010 through 2016.
- Operating Profit Margin Analysis
- The operating profit margin reflected a low-margin, high-volume business model. After recovering from a negative margin of -0.24% in 2005, the ratio stabilized within a narrow range, typically fluctuating between 1.12% and 1.89%. The margin peaked at 1.89% in 2013 before stabilizing near 1.86% by 2016. The relative stability of this percentage despite massive revenue growth suggests that operating expenses scaled proportionally with sales.
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Comparison to Competitors
McKesson Corp., operating profit margin, long-term trends, comparison to competitors
| McKesson Corp. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Mar 31, 2016 | 1.86% | 15.27% | 34.95% | 18.35% | 7.03% |
| Mar 31, 2015 | 1.66% | 14.05% | 31.04% | 18.59% | 7.05% |
| Mar 31, 2014 | 1.72% | 12.84% | 25.56% | 22.42% | 7.92% |
| Mar 31, 2013 | 1.89% | 12.03% | 37.64% | 26.53% | 7.90% |
| Mar 31, 2012 | 1.75% | 20.28% | 40.30% | 0.00% | 8.42% |
| Mar 31, 2011 | 1.62% | 14.81% | 39.54% | 0.00% | 8.36% |
| Mar 31, 2010 | 1.85% | 17.31% | 39.29% | 0.00% | 8.41% |
| Mar 31, 2009 | 1.12% | 20.27% | 35.87% | 0.00% | 7.35% |
| Mar 31, 2008 | 1.45% | 19.28% | 35.53% | 0.00% | 6.54% |
| Mar 31, 2007 | 1.36% | 17.67% | 34.41% | 0.00% | 10.57% |
| Mar 31, 2006 | 1.27% | 9.09% | 28.81% | 0.00% | 9.88% |
| Mar 31, 2005 | -0.24% | 19.53% | 30.25% | 0.00% | 11.98% |
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).