Total Asset Turnover
since 2005
Calculation
McKesson Corp., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Mar 31, 2016 | 3.37 | = | 190,884) | ÷ | 56,563) |
| Mar 31, 2015 | 3.32 | = | 179,045) | ÷ | 53,870) |
| Mar 31, 2014 | 2.66 | = | 137,609) | ÷ | 51,759) |
| Mar 31, 2013 | 3.52 | = | 122,455) | ÷ | 34,786) |
| Mar 31, 2012 | 3.71 | = | 122,734) | ÷ | 33,093) |
| Mar 31, 2011 | 3.63 | = | 112,084) | ÷ | 30,886) |
| Mar 31, 2010 | 3.86 | = | 108,702) | ÷ | 28,189) |
| Mar 31, 2009 | 4.22 | = | 106,632) | ÷ | 25,267) |
| Mar 31, 2008 | 4.13 | = | 101,703) | ÷ | 24,603) |
| Mar 31, 2007 | 3.88 | = | 92,977) | ÷ | 23,943) |
| Mar 31, 2006 | 4.20 | = | 88,050) | ÷ | 20,975) |
| Mar 31, 2005 | 4.29 | = | 80,515) | ÷ | 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
An analysis of the financial performance from 2005 to 2016 reveals a consistent growth trajectory in both revenues and total assets, although the efficiency of asset utilization, as measured by total asset turnover, exhibited a general long-term decline punctuated by significant volatility in the later years.
- Revenue and Asset Expansion
- Revenues grew steadily from 80,515 million US dollars in 2005 to 190,884 million US dollars in 2016. Parallel to this, total assets increased from 18,775 million US dollars to 56,563 million US dollars over the same period. The expansion of the asset base was necessary to support the scaling of operations, but the timing of these increases relative to revenue growth influenced the turnover efficiency.
- Total Asset Turnover Trends
- The total asset turnover ratio remained relatively stable and high between 2005 and 2009, fluctuating within a narrow range between 4.20 and 4.29. A period of gradual erosion followed from 2010 to 2013, during which the ratio declined to 3.52. This suggests a period where asset growth slightly outpaced the growth in generated revenues.
- Analysis of Significant Volatility (2014–2016)
- A sharp contraction in asset turnover occurred in 2014, reaching a period low of 2.66. This decline is directly correlated to a substantial increase in total assets, which jumped from 34,786 million US dollars in 2013 to 51,759 million US dollars in 2014. However, a recovery is observed in 2015 and 2016, with the ratio rising to 3.32 and 3.37, respectively. This rebound was driven by a significant surge in revenues, which increased from 137,609 million US dollars in 2014 to 179,045 million US dollars in 2015, thereby improving the efficiency of the expanded asset base.
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Comparison to Competitors
McKesson Corp., total asset turnover, long-term trends, comparison to competitors
| McKesson Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Mar 31, 2016 | 3.37 | 0.40 | 1.29 | 0.42 | 0.29 | 1.50 |
| Mar 31, 2015 | 3.32 | 0.49 | 1.27 | 0.49 | 0.19 | 1.40 |
| Mar 31, 2014 | 2.66 | 0.49 | 1.18 | 0.54 | 0.45 | 1.50 |
| Mar 31, 2013 | 3.52 | 0.51 | 1.18 | 0.57 | 0.48 | 1.49 |
| Mar 31, 2012 | 3.71 | 0.59 | 1.03 | 0.54 | 0.49 | 1.36 |
| Mar 31, 2011 | 3.63 | 0.64 | 1.15 | 0.57 | 0.52 | 1.49 |
| Mar 31, 2010 | 3.86 | 0.59 | 1.15 | 0.59 | 0.56 | 1.48 |
| Mar 31, 2009 | 4.22 | 0.59 | 1.17 | 0.58 | 0.62 | 1.47 |
| Mar 31, 2008 | 4.13 | 0.70 | 1.27 | 0.59 | 0.61 | 1.44 |
| Mar 31, 2007 | 3.88 | 0.65 | 1.15 | 0.58 | 0.63 | 1.46 |
| Mar 31, 2006 | 4.20 | 0.62 | 1.08 | 0.55 | 0.57 | 1.46 |
| Mar 31, 2005 | 4.29 | 0.77 | 0.87 | 0.45 | 0.61 | 1.08 |
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., total asset turnover, long-term trends, comparison to sector (health care equipment & services)
| McKesson Corp. | Health Care Equipment & Services | |
|---|---|---|
| Mar 31, 2016 | 3.37 | 0.92 |
| Mar 31, 2015 | 3.32 | 0.85 |
| Mar 31, 2014 | 2.66 | 1.05 |
| Mar 31, 2013 | 3.52 | 1.04 |
| Mar 31, 2012 | 3.71 | 0.94 |
| Mar 31, 2011 | 3.63 | 1.02 |
| Mar 31, 2010 | 3.86 | 1.00 |
| Mar 31, 2009 | 4.22 | 1.03 |
| Mar 31, 2008 | 4.13 | 1.09 |
| Mar 31, 2007 | 3.88 | 1.06 |
| Mar 31, 2006 | 4.20 | 1.03 |
| Mar 31, 2005 | 4.29 | 0.88 |
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., total asset turnover, long-term trends, comparison to industry (health care)
| McKesson Corp. | Health Care | |
|---|---|---|
| Mar 31, 2016 | 3.37 | 0.57 |
| Mar 31, 2015 | 3.32 | 0.55 |
| Mar 31, 2014 | 2.66 | 0.60 |
| Mar 31, 2013 | 3.52 | 0.58 |
| Mar 31, 2012 | 3.71 | 0.58 |
| Mar 31, 2011 | 3.63 | 0.61 |
| Mar 31, 2010 | 3.86 | 0.61 |
| Mar 31, 2009 | 4.22 | 0.55 |
| Mar 31, 2008 | 4.13 | 0.73 |
| Mar 31, 2007 | 3.88 | 0.71 |
| Mar 31, 2006 | 4.20 | 0.69 |
| Mar 31, 2005 | 4.29 | 0.66 |
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).