Return on Assets (ROA)
since 2005
Calculation
McKesson Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to McKesson Corporation1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2016 | 3.99% | = | 100 | × | 2,258) | ÷ | 56,563) |
| Mar 31, 2015 | 2.74% | = | 100 | × | 1,476) | ÷ | 53,870) |
| Mar 31, 2014 | 2.44% | = | 100 | × | 1,263) | ÷ | 51,759) |
| Mar 31, 2013 | 3.85% | = | 100 | × | 1,338) | ÷ | 34,786) |
| Mar 31, 2012 | 4.24% | = | 100 | × | 1,403) | ÷ | 33,093) |
| Mar 31, 2011 | 3.89% | = | 100 | × | 1,202) | ÷ | 30,886) |
| Mar 31, 2010 | 4.48% | = | 100 | × | 1,263) | ÷ | 28,189) |
| Mar 31, 2009 | 3.26% | = | 100 | × | 823) | ÷ | 25,267) |
| Mar 31, 2008 | 4.02% | = | 100 | × | 990) | ÷ | 24,603) |
| Mar 31, 2007 | 3.81% | = | 100 | × | 913) | ÷ | 23,943) |
| Mar 31, 2006 | 3.58% | = | 100 | × | 751) | ÷ | 20,975) |
| Mar 31, 2005 | -0.83% | = | 100 | × | (157) | ÷ | 18,775) |
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 trajectory between 2005 and 2016 is characterized by an initial recovery from net losses followed by a period of sustained profitability and a significant expansion of the asset base.
- Net Income Performance
- A transition from a net loss of 157 million US dollars in 2005 to a net income of 2.258 billion US dollars by 2016 is observed. While profitability grew steadily between 2006 and 2013, reaching 1.403 billion US dollars, it experienced a slight contraction in 2014 before surging to its highest point in 2016.
- Asset Growth Patterns
- Total assets exhibited consistent growth from 18.775 billion US dollars in 2005 to 34.786 billion US dollars in 2013. A significant escalation occurred in 2014, when assets increased to 51.759 billion US dollars, indicating a major expansion of the balance sheet. This upward trend continued through 2016, ending at 56.563 billion US dollars.
- Return on Assets (ROA) Interpretation
- The ROA recovered from -0.83% in 2005 to fluctuate between 3.26% and 4.48% through 2013. A notable decline in efficiency is evident in 2014 and 2015, where the ROA dropped to 2.44% and 2.74%, respectively. This downward trend correlates with the rapid increase in total assets, which temporarily diluted the return on investment. However, a recovery to 3.99% occurred in 2016, driven by a substantial increase in net income that aligned more closely with the expanded asset base.
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., ROA, long-term trends, comparison to competitors
| McKesson Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Mar 31, 2016 | 3.99% | 2.66% | 3.79% | 11.34% | 3.55% | 5.71% |
| Mar 31, 2015 | 2.74% | 10.72% | 4.15% | 12.00% | 2.51% | 5.22% |
| Mar 31, 2014 | 2.44% | 5.53% | 4.14% | 10.58% | 8.08% | 6.50% |
| Mar 31, 2013 | 3.85% | 6.00% | 4.18% | 16.99% | 9.95% | 6.87% |
| Mar 31, 2012 | 4.24% | 8.87% | 4.50% | 16.18% | 10.93% | 6.83% |
| Mar 31, 2011 | 3.89% | 7.84% | 5.09% | 16.16% | 10.18% | 7.57% |
| Mar 31, 2010 | 4.48% | 7.78% | 5.75% | 15.97% | 11.03% | 7.35% |
| Mar 31, 2009 | 3.26% | 10.96% | 9.10% | 12.85% | 9.17% | 6.47% |
| Mar 31, 2008 | 4.02% | 11.51% | 5.15% | 13.86% | 10.05% | 5.33% |
| Mar 31, 2007 | 3.81% | 9.08% | 6.43% | 13.90% | 14.36% | 9.14% |
| Mar 31, 2006 | 3.58% | 4.75% | 5.98% | 10.72% | 12.95% | 8.61% |
| Mar 31, 2005 | -0.83% | 11.57% | 4.79% | 18.77% | 10.86% | 7.98% |
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).
Comparison to Sector (Health Care Equipment & Services)
McKesson Corp., ROA, long-term trends, comparison to sector (health care equipment & services)
| McKesson Corp. | Health Care Equipment & Services | |
|---|---|---|
| Mar 31, 2016 | 3.99% | 4.37% |
| Mar 31, 2015 | 2.74% | 4.93% |
| Mar 31, 2014 | 2.44% | 6.03% |
| Mar 31, 2013 | 3.85% | 6.64% |
| Mar 31, 2012 | 4.24% | 7.54% |
| Mar 31, 2011 | 3.89% | 7.54% |
| Mar 31, 2010 | 4.48% | 7.69% |
| Mar 31, 2009 | 3.26% | 8.84% |
| Mar 31, 2008 | 4.02% | 7.51% |
| Mar 31, 2007 | 3.81% | 8.92% |
| Mar 31, 2006 | 3.58% | 7.40% |
| Mar 31, 2005 | -0.83% | 7.94% |
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., ROA, long-term trends, comparison to industry (health care)
| McKesson Corp. | Health Care | |
|---|---|---|
| Mar 31, 2016 | 3.99% | 7.31% |
| Mar 31, 2015 | 2.74% | 7.71% |
| Mar 31, 2014 | 2.44% | 8.59% |
| Mar 31, 2013 | 3.85% | 8.76% |
| Mar 31, 2012 | 4.24% | 8.09% |
| Mar 31, 2011 | 3.89% | 7.36% |
| Mar 31, 2010 | 4.48% | 7.24% |
| Mar 31, 2009 | 3.26% | 9.73% |
| Mar 31, 2008 | 4.02% | 9.50% |
| Mar 31, 2007 | 3.81% | 8.88% |
| Mar 31, 2006 | 3.58% | 10.52% |
| Mar 31, 2005 | -0.83% | 9.67% |
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).