McKesson Corp. (NYSE:MCK)

The financial data reveals several notable trends in the company’s performance over the twelve-year period ending March 31, 2016.

Revenues

Revenues show a consistent upward trajectory throughout the entire period. Starting at US$80,515 million in 2005, revenues steadily increased each year, reaching US$190,884 million in 2016. This represents more than a twofold increase over the period, with occasional years of accelerated growth, particularly from 2013 onward.

Operating income (loss)

The operating income transitioned from a loss of US$191 million in 2005 to positive figures in subsequent years, reflecting a recovery and growth in operational profitability. It rose steadily from US$1,114 million in 2006 to US$3,545 million in 2016. The operating income exhibited consistent improvement year-over-year, although some fluctuations are visible such as slight declines between 2010 and 2011. Overall, the trend indicates strengthening operational efficiency and profitability.

Net income attributable to McKesson Corporation

Net income also showed a significant positive trend over the period. Initially, there was a net loss of US$157 million in 2005, followed by a recovery to US$751 million in 2006. From that point, net income increased generally year-over-year, with minor fluctuations. The net income peaked at US$2,258 million in 2016. Despite some years where net income plateaued or slightly declined (such as between 2012 and 2014), the long-term direction is upward.

In summary, the data demonstrates consistent revenue growth, transitioning from early operational challenges to sustained operating profitability, and an overall increase in net income. The company’s financial health appears to have strengthened progressively, marked by improved earnings metrics alongside expanding revenues.

The analysis of the available financial data reveals a consistent upward trend in both current assets and total assets over the examined period. Current assets increased steadily from $15,332 million in March 2005 to $38,437 million in March 2016, showing a significant growth which suggests an enhancement in liquidity and short-term financial strength.

Similarly, total assets followed a continuous growth trajectory, rising from $18,775 million in March 2005 to $56,563 million in March 2016. This expansion in total assets indicates an overall increase in the company's resource base and financial capacity to support its operations and growth strategies.

Current Assets

The steady increase in current assets over the period indicates an improvement in the company's ability to cover short-term liabilities and fund day-to-day operations. Notably, current assets showed a marked increase between March 2013 and March 2016, growing from $23,170 million to $38,437 million, which may reflect enhanced inventory levels, receivables, or cash reserves.

Total Assets

Total assets grew robustly throughout the period, with a significant acceleration observed after March 2013. From $34,786 million in 2013, total assets increased to $56,563 million by 2016, marking a substantial increase in asset base within a three-year timeframe. This suggests major investments or acquisitions contributing to asset growth.

In summary, both liquidity and overall asset base have shown strong, sustained growth over the period analyzed. The accelerating growth phase after 2013 hints at strategic initiatives that have likely expanded the company's operational scale and financial standing.

The financial data reveals several notable trends over the twelve-year period under review. A detailed examination of the key liabilities and equity components provides insight into the company’s evolving financial position.

Current Liabilities

Current liabilities show a generally increasing trend from US$11,793 million in 2005 to US$35,071 million in 2016. There are consistent year-over-year increases with some acceleration observed particularly from 2012 onwards. Notably, the amount nearly tripled over the entire period, indicating a growing short-term obligation base.

Total Debt

Total debt exhibits more volatility compared to current liabilities. It initially decreased between 2005 and 2006 but then increased sharply to a peak of US$4,873 million in 2013. A significant jump is observed in 2014, reaching US$10,719 million, before declining steadily to US$8,154 million by 2016. This pattern suggests periods of substantial borrowing followed by partial repayment or restructuring activities.

Total Stockholders’ Equity

Stockholders’ equity has generally increased over the timeframe, starting at US$5,275 million in 2005 and reaching US$8,924 million in 2016. There are fluctuations observed around 2011 to 2013, where equity decreased modestly, followed by a recovery and new highs toward the end of the period. This indicates overall growth in the company’s net worth, albeit with some periods of pressure on equity levels.

Overall, the company has experienced substantial growth in current liabilities and has managed its debt with some considerable fluctuations. The equity base has shown resilience with long-term growth, suggesting that despite increasing liabilities, the company has maintained or grown its net financial strength over the years covered by the data.

The cash flow activities over the presented periods reveal several notable trends and fluctuations in operational, investing, and financing cash flows.

Net Cash Provided by Operating Activities

This metric shows considerable volatility but an overall upward trend from 2005 through 2016. Starting at 1,538 million USD in 2005, it peaked at 2,744 million USD in 2006, then declined sharply to 869 million USD in 2008. After 2008, operating cash flow generally increased, reaching a high of 3,672 million USD by 2016. This trend indicates improving cash generation capacity from core operations over the long term despite short-term fluctuations.

Net Cash Used in Investing Activities

The investing cash flows consistently indicate cash outflows, reflecting investments in assets or acquisitions. The outflows peaked dramatically in 2014 at -5,046 million USD, a significant increase compared to other years. Other substantial outflows occur intermittently, such as -2,209 million USD in 2013 and -2,103 million USD in 2007. The general pattern shows significant investments in certain years while being more moderate or minimal in others, suggesting strategic capital expenditures or acquisitions were concentrated in specific periods.

Net Cash Provided by (Used in) Financing Activities

The financing cash flows exhibit a highly variable pattern with alternating periods of cash inflows and outflows. From 2005 to 2008, financing activities were more outflow-oriented, notably -1,470 million USD in 2008 and -1,841 million USD in 2011. However, 2014 shows a marked reversal with a strong inflow of 3,619 million USD, the highest throughout the period, indicating significant financing activities such as debt issuance or equity raising. Subsequently, financing cash flows reverted to sizeable outflows, highlighting fluctuating strategies in capital structure management.

In synthesis, operational cash flow strength improved steadily post-2008, supporting liquidity despite occasional stresses. Investing activities involved significant and uneven capital deployment, likely reflecting strategic growth initiatives. Financing activities were characterized by oscillating cash movements, with occasional large inflows possibly related to funding for investments or debt refinancing. The interplay between these cash flow activities suggests active management of resources to balance operational needs, investment opportunities, and financing structures over time.

Earnings per Share (EPS)

The basic earnings per share demonstrated a significant improvement over the analyzed period. Starting with a negative value of -0.53 US$ in 2005, EPS rose sharply to 2.46 US$ in 2006 and continued a generally upward trajectory to reach 9.82 US$ by 2016. Despite minor fluctuations from year to year, such as a slight dip in 2009 and 2014, the overall trend is strongly positive. Similarly, diluted earnings per share followed the same pattern, increasing from -0.53 US$ in 2005 to 9.7 US$ in 2016, which indicates improved earnings performance and efficient share dilution management over the years.

Dividend per Share

Dividends per share were relatively stable initially, maintaining a constant 0.24 US$ from 2005 to 2008. Starting in 2009, dividends increased gradually in multiple steps: first doubling to 0.48 US$, then progressively rising to 1.08 US$ by 2016. This steady increase suggests an enhanced capacity and willingness to return value to shareholders, consistent with the improvement in earnings per share.

Overall Financial Trends

The data points to a company exhibiting substantial earnings growth and a corresponding increase in shareholder dividends. The progression from negative to strong positive EPS, coupled with rising dividends, reflects enhanced profitability and financial stability. The close alignment of basic and diluted EPS growth supports that share dilution did not negatively impact earnings quality. Incremental dividend raises further reinforce confidence in sustainable earnings growth and cash flow generation.