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McKesson (McKesson) Total Inventories : $22,020 Mil (As of Dec. 2023)


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What is McKesson Total Inventories?

McKesson's total inventories for the quarter that ended in Dec. 2023 was $22,020 Mil. McKesson's average total inventories from the quarter that ended in Sep. 2023 to the quarter that ended in Dec. 2023 was $21,983 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. McKesson's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-291.26.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. McKesson's Days Inventory for the three months ended in Dec. 2023 was 25.80.

Inventory Turnover measures how fast the company turns over its inventory within a year. McKesson's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.54.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. McKesson's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.27.


McKesson Total Inventories Historical Data

The historical data trend for McKesson's Total Inventories 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.

* Premium members only.

McKesson Total Inventories Chart

McKesson Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16,709.00 16,734.00 19,246.00 18,702.00 19,691.00

McKesson Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Total Inventories Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20,657.00 19,691.00 20,510.00 21,945.00 22,020.00

McKesson Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.


McKesson  (NYSE:MCK) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

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

Net-Net Working Capital Per Share (Q: Dec. 2023 )
=(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

2. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

McKesson's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory=Average Total Inventories (Q: Dec. 2023 )/Cost of Goods Sold (Q: Dec. 2023 )*Days in Period
=21982.5/77746*365 / 4
=25.80

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

McKesson's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2023 ) / Average Total Inventories (Q: Dec. 2023 )
=77746 / 21982.5
=3.54

4. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

McKesson's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=21982.5 / 80898
=0.27

* 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.


Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


McKesson Total Inventories Related Terms

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McKesson (McKesson) Business Description

Traded in Other Exchanges
Address
6555 State Highway 161, Irving, TX, USA, 75039
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

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