The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin increased from 0.02% in 2019 to 1.29% in 2022.
The average EBIT Margin for the period under analysis was 0.22%, with 2020 and 2022 performing the worst and best, respectively.
In the current year, McKESSON was able to cover its interest liabilities 14.52 times – compared to 2018 when it was 2.48 times.
The Asset tunover stood at 4.66 times in the current year from 3.52 in 2018, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of McKESSON has fluctuated year on year. The revenue increased by 7.81% between 2019 and 2020 and a further 3.11% increase was recorded between 2020 and 2021. There also occurred an increase of 4.83% between 2022 and 2023 (the current period).
McKESSON’s performance in profitability looks bad as the return on capital employed also recorded bad performance during the period of analysis.
Liquidity
The company’s result in liquidity looks weak, as current ratio decreased from 1.02:1 to 0.92:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
McKESSON is both equity and debt financed.
The debt-to-equity (D/E) ratio has been decreasing year on year. The gearing position of the company appears to be low as it stood at a negative 3.71 in the current year.
