Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
- Aggregate Accruals
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Profitability Ratios (Summary)
McKesson Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30).
The financial performance displays various trends across the quarterly periods considered. Observing the profit margins, the gross profit margin demonstrates a general upward trajectory from mid-2011 through late 2014, rising from approximately 5.31% to a peak around 6.41%. This increase suggests improved efficiency or pricing power during this timeframe. However, from early 2015 onward, there is a gradual decline in this margin, falling back closer to the 5.86% level by late 2016.
The operating profit margin maintains relative stability with minor fluctuations, ranging between roughly 1.57% and 1.94%. It experiences moderate increases up to late 2012, stabilizes through 2013, then slightly decreases and rises again, though without significant volatility. This stability points to consistent operational control over costs relative to revenues.
Net profit margin reveals more variability, starting near 1.04% and peaking around 1.30% in late 2012. Thereafter, a decline occurs with values dipping below 1.0% in several quarters around 2013 and 2014, followed by a recovery period where the margin reaches above 1.18% by early 2016. Toward late 2016, the margin declines modestly again. These fluctuations imply factors affecting net profitability beyond operational efficiency, possibly including non-operational items or tax effects.
Return on equity (ROE) shows meaningful variation, initially around 17.2%, moving upward significantly from 2011 to 2012 (exceeding 20%), then dipping during 2013 and early 2014 periods to the low-to-mid teens. Subsequently, this ratio climbs again, surpassing 25% by early 2016 before retreating to around 20% toward the end of the analyzed period. Such movements suggest changes in profitability relative to shareholder equity, potentially influenced by earnings volatility or capital structure adjustments.
Return on assets (ROA) progresses from approximately 3.84% in mid-2011 to a high near 4.86% in late 2012, indicating efficient asset utilization during that phase. However, there is a notable decline through 2013 and early 2014, falling to about 2.34%. Following this trough, ROA improves steadily to nearly 3.99% by the first quarter of 2016, with a subsequent modest decrease to 3.28% by late 2016. This pattern mirrors some aspects of the ROE behavior and suggests fluctuating effectiveness in asset management over the periods examined.
- Gross Profit Margin
- Upward trend from 5.31% to 6.41% between 2011 and 2014, followed by gradual decline to 5.86% by late 2016.
- Operating Profit Margin
- Stable with minor fluctuations between 1.57% and 1.94%, indicating consistent operational efficiency.
- Net Profit Margin
- Variable, with peaks near 1.30% in 2012 and lows below 1.0% during 2013-2014; improved again by 2016 but ending slightly lower.
- Return on Equity (ROE)
- Fluctuating between 13.83% and 25.30%, showing significant earnings variation relative to equity over time.
- Return on Assets (ROA)
- Ranged from 2.34% to 4.86% with a mid-period dip, reflecting changing asset utilization efficiency.
Return on Sales
Return on Investment
Gross Profit Margin
McKesson Corp., gross profit margin calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30).
1 Q2 2017 Calculation
Gross profit margin = 100
× (Gross profitQ2 2017
+ Gross profitQ1 2017
+ Gross profitQ4 2016
+ Gross profitQ3 2016)
÷ (RevenuesQ2 2017
+ RevenuesQ1 2017
+ RevenuesQ4 2016
+ RevenuesQ3 2016)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited a generally upward trend over the analyzed periods, increasing from approximately $29.98 billion in June 2011 to nearly $49.96 billion by September 2016. Fluctuations were observed quarter to quarter, but the overall trajectory was positive, with notable growth phases occurring between mid-2013 and the end of 2014 as well as between 2015 and the third quarter of 2016.
- Gross Profit
- Gross profit demonstrated a strong increasing trend, rising from $1.51 billion in June 2011 to a peak of $2.91 billion in June 2015, before slightly declining towards $2.76 billion by September 2016. Periodic fluctuations aligned somewhat with revenue changes, with gross profit margins improving steadily over time. Significant growth was particularly evident during 2013 through 2015, suggesting improved operational efficiency or favorable pricing strategies.
- Gross Profit Margin
- The gross profit margin showed a consistent and gradual increase from approximately 5.31% in June 2011 to a peak near 6.41% in December 2014. After this peak, the margin slightly contracted but remained above 5.8% through September 2016. This improvement indicates better cost management or a shift toward higher-margin products or services over the periods. The trend suggests an enhanced capacity to convert revenues into gross profit despite some volatility in later periods.
- Overall Financial Trends
- The company's financial performance improved significantly during the period under review, with revenues and gross profit rising substantially. The increase in gross profit margin points to enhanced profitability and possibly improved operational leverage. Despite some quarter-to-quarter variations, the underlying trend was upward, reflecting successful growth and margin expansion strategies. The slight decline in gross profit after mid-2015, coupled with minor margin compression, indicates some challenges in maintaining peak profitability levels but does not substantially detract from the overall positive trend.
Operating Profit Margin
McKesson Corp., operating profit margin calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30).
1 Q2 2017 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2017
+ Operating incomeQ1 2017
+ Operating incomeQ4 2016
+ Operating incomeQ3 2016)
÷ (RevenuesQ2 2017
+ RevenuesQ1 2017
+ RevenuesQ4 2016
+ RevenuesQ3 2016)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends regarding operating income, revenues, and operating profit margin over the observed periods.
- Operating Income
- Operating income fluctuated significantly across the quarters. Initial figures were modest but saw a marked increase around the first quarter of 2012, reflecting a potential gain in operational efficiency or favorable market conditions. This was followed by a period of volatility, with decreases in certain quarters such as December 2012 and December 2013, suggesting possible challenges during those times. A generally upward trend resumed from late 2013 through mid-2015, reaching peaks that surpassed previous highs. However, the final quarters in 2016 showed a decline, indicating some pressure on profitability or one-time factors impacting results.
- Revenues
- Revenues overall demonstrated a steady upward trajectory throughout the entire period, growing from approximately 30 billion US dollars to nearly 50 billion. There were minor fluctuations quarter-to-quarter, but the long-term trend was positive, pointing to consistent growth in the top line. Several quarters, particularly from 2013 onwards, recorded substantial increases, which may be attributed to expansion activities, acquisitions, or higher demand for the company's offerings.
- Operating Profit Margin
- The operating profit margin exhibited moderate variability, generally ranging between 1.5% and 1.9%. Early periods showed a gradual improvement in profitability margins, peaking near 1.94% in the third quarter of 2012. However, a decline followed, with margins dipping to around 1.57% in the latter part of 2014. Afterward, there was a mild recovery with margins stabilizing around 1.8% or higher through to mid-2016, before a decline again in the final quarter. This pattern suggests fluctuations in cost management effectiveness and revenue quality impacting profitability.
In summary, while revenues experienced robust and consistent growth over the reported periods, operating income showed more volatility, and operating profit margins reflected periodic pressures on profitability. The interplay of these factors indicates a dynamic operational environment with both opportunities for growth and challenges in maintaining stable profitability margins.
Net Profit Margin
McKesson Corp., net profit margin calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to McKesson Corporation | |||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30).
1 Q2 2017 Calculation
Net profit margin = 100
× (Net income attributable to McKesson CorporationQ2 2017
+ Net income attributable to McKesson CorporationQ1 2017
+ Net income attributable to McKesson CorporationQ4 2016
+ Net income attributable to McKesson CorporationQ3 2016)
÷ (RevenuesQ2 2017
+ RevenuesQ1 2017
+ RevenuesQ4 2016
+ RevenuesQ3 2016)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and trends in key financial metrics over the observed periods.
- Net Income
- Net income attributable to the corporation demonstrates variability across quarters with several peaks and troughs. Early periods show moderate levels around 286 to 300 million USD with an exceptional peak in March 2012 at 521 million USD. Following this, net income declined significantly in December 2013 to 64 million USD but rebounded sharply in subsequent quarters, reaching highs above 600 million USD in late 2015. However, this was followed by a decline in early 2016, reflecting earnings volatility.
- Revenues
- Revenue trends exhibit an overall upward trajectory despite some short-term declines. Starting near 30 billion USD, revenues rose steadily, culminating in a substantial increase by late 2014, where quarterly revenues surpassed 43 billion USD. The highest levels occurred around 2014 and 2015, peaking close to 49 billion USD. Some quarters experienced marginal dips, but the general trend indicates growth in the company’s revenue base over the observed period.
- Net Profit Margin
- The net profit margin, expressed as a percentage, fluctuates within a narrow range mostly between 0.8% and 1.3%. There are intermittent increases aligning with peaks in net income, such as in mid-2012 when margins reached around 1.3%, and again in early 2016 with margins rising above 1.15%. Conversely, margins declined during periods of reduced net income, notably in late 2013 and early 2014, demonstrating some sensitivity to changes in profitability despite revenue growth.
- Overall Insights
- The data reflects a company experiencing steady revenue growth over the period, punctuated by significant variability in net income and profit margins. Earnings volatility suggests possible impacts from cost pressures, operational changes, or market conditions influencing profitability. The upward trend in revenues indicates expanded sales or market penetration, but the fluctuating profit margins highlight areas for potential efficiency improvements or cost management strategies.
Return on Equity (ROE)
McKesson Corp., ROE calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to McKesson Corporation | |||||||||||||||||||||||||||||
| Total McKesson Corporation stockholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30).
1 Q2 2017 Calculation
ROE = 100
× (Net income attributable to McKesson CorporationQ2 2017
+ Net income attributable to McKesson CorporationQ1 2017
+ Net income attributable to McKesson CorporationQ4 2016
+ Net income attributable to McKesson CorporationQ3 2016)
÷ Total McKesson Corporation stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial analysis over the observed periods reveals several notable trends regarding profitability and equity performance.
- Net Income
- Net income attributable to the company exhibits significant fluctuations throughout the quarters. Initial values show moderate earnings, followed by a peak in the quarter ending March 31, 2012. Subsequent periods reveal alternating rises and declines, with a pronounced drop recorded in the quarter ending December 31, 2013. A recovery trend appears after this low point, with net income reaching higher levels by the end of the timeline, although variability persists. The overall pattern suggests episodic volatility in profitability, potentially influenced by seasonal factors or operational adjustments.
- Total Stockholders’ Equity
- The total stockholders’ equity demonstrates a generally upward trajectory across the periods under review. Despite minor declines in specific quarters, the equity base strengthens overall, moving from approximately $6.9 billion to over $9.4 billion. This steady increase indicates consistent reinvestment of earnings and possibly capital infusions, contributing to a solid financial foundation.
- Return on Equity (ROE)
- The ROE percentages show variable but generally strong performance. Early periods reflect ROEs in the high teens to low twenties percentile, with a noticeable dip around late 2013 and early 2014 correlating with the reduced net income during those quarters. A recovery phase in ROE follows, culminating in peak levels exceeding 25% in the first quarter of 2016. The latter quarters sustain high ROE figures, indicating effective use of equity to generate profits. The variability in ROE aligns with fluctuations in net income rather than changes in equity, given the steady equity base.
In summary, while net income shows considerable volatility, the company maintains a solid equity base and exhibits strong, albeit somewhat variable, returns on equity. These patterns suggest resilience and overall financial health, with periodic earnings shifts that may warrant further investigation to understand underlying drivers.
Return on Assets (ROA)
McKesson Corp., ROA calculation (quarterly data)
| Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to McKesson Corporation | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-K (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-K (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-K (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-K (reporting date: 2013-03-31), 10-Q (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-K (reporting date: 2012-03-31), 10-Q (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30).
1 Q2 2017 Calculation
ROA = 100
× (Net income attributable to McKesson CorporationQ2 2017
+ Net income attributable to McKesson CorporationQ1 2017
+ Net income attributable to McKesson CorporationQ4 2016
+ Net income attributable to McKesson CorporationQ3 2016)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data over the observed quarters display several notable trends regarding the company's profitability, asset base, and return on assets (ROA).
- Net Income
- The net income attributable to the company exhibits fluctuations throughout the periods. Initially, there is a gradual increase from 286 million USD in June 2011 to a peak of 521 million USD in March 2012. Following this, the figures oscillate, with a significant dip to as low as 64 million USD in December 2013. Subsequently, net income recovers and generally trends upward, reaching a high of 634 million USD in December 2015 before declining again to 307 million USD by September 2016. This volatility suggests potential variability in operational performance or extraordinary items affecting profitability.
- Total Assets
- The total asset base consistently grows over the reported timeline. Starting at 31,017 million USD in June 2011, assets steadily increase with minor fluctuations, notably jumping to over 51,000 million USD in March 2014. Thereafter, the asset base sustains growth momentum, culminating at 58,315 million USD in September 2016. This steady expansion of assets implies ongoing investment and possible acquisitions or organic growth contributing to asset accumulation.
- Return on Assets (ROA)
- ROA values indicate the efficiency with which the company utilizes its assets to generate profit. The ratio shows initial improvement, increasing from 3.84% in June 2011 to a peak around 4.86% in September 2012. Thereafter, it declines to a trough near 2.34% in December 2014, reflecting reduced asset efficiency during this period. Following this low point, ROA gradually improves again, reaching 3.99% in March 2016 before tapering slightly to 3.28% at the end of the dataset. This pattern mirrors the fluctuations in net income relative to the growing asset base, signifying periods of operational adjustment or changes in profitability drivers.