McKesson (McKesson) Accounts Receivable

: $23,066 Mil (As of Dec. 2023)

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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. McKesson's accounts receivables for the quarter that ended in Dec. 2023 was $23,066 Mil.

Accounts receivable can be measured by Days Sales Outstanding. McKesson's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 26.02.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. McKesson's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-291.26.

McKesson Accounts Receivable Historical Data

The historical data trend for McKesson's Accounts Receivable can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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McKesson Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Accounts Receivable

14,941.00

17,201.00

17,106.00

16,438.00

17,160.00

McKesson Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Accounts Receivable																20,537.00	17,160.00	21,860.00	22,494.00	23,066.00

McKesson Accounts Receivable Calculation

Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.

McKesson Accounts Receivable Explanation

1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.

McKesson's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	23066	/	80898	*	91
=	26.02

2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), McKesson's accounts receivable are only considered to be worth 75% of book value:

McKesson's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 is calculated as:

	Net-Net Working Capital Per Share
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1982	+	0.75 * 23066	+	0.5 * 22020	-	68194
-	0	-	371)	/	131.408
=	-291.26

Be Aware

Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.

If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.

Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.

McKesson Accounts Receivable Related Terms

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McKesson (McKesson) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » McKesson Corp (NYSE:MCK) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

MCK:Germany MCK:Germany M1CK34:Brazil

Address

6555 State Highway 161, Irving, TX, USA, 75039

Website

https://www.mckesson.com

McKesson Corp is one of three leading pharmaceutical wholesalers in the U.S. engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and Cardinal Health, the three account for over 90% of the U.S. pharmaceutical wholesale industry. Outside the U.S. market, McKesson engages in pharmaceutical wholesale and distribution in Canada. Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.

Executives

Brian S. Tyler	officer: Chief Executive Officer	MCKESSON CORPORATION, 6555 STATE HWY 161, IRVING TX 75039
Leann B Smith	officer: EVP & Chief HR Officer	6555 NORTH STATE HWY 161, IRVING TX 75039
Thomas L Rodgers	officer: EVP, Chief Strategy & BDO	6555 NORTH STATE HWY 161, IRVING TX 75039
Lori A. Schechter	officer: EVP, Chief Legal Officer & GC	MCKESSON CORPORATION, 6555 NORTH STATE HWY 161, IRVING TX 75039
Nancy Flores	officer: EVP, CIO & CTO	6555 NORTH STATE HWY 161, IRVING TX 75039
Britt J. Vitalone	officer: EVP & CFO	MCKESSON CORPORATION, 6555 STATE HWY 161, IRVING TX 75039
Tracy Faber	officer: EVP & Chief HR Officer	6555 NORTH STATE HWY 161, IRVING TX 75039
Maria Martinez	director	THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Susan Nowakowski	director	14778 EL RODEO CT., RANCHO SANTA FE CA 92067
Dominic J Caruso	director	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Donald R Knauss	director	P O BOX 1734, ATLANTA GA 30301
Bradley E Lerman	director	MEDTRONIC, INC., 710 MEDTRONIC PKWY MSLC300, MINNEAPOLIS MN 55432
Webster Roy Dunbar	director	5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
Rutledge Napoleon B Jr	officer: SVP, Controller & CAO	2999 WILDWOOD PARKWAY, ATLANTA GA 30339
Kathleen Wilson-thompson	director	PO BOX 3599, BATTLE CREEK MI 49016-3599