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McKesson (STU:MCK) Days Inventory : 25.51 (As of Sep. 2024)


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What is McKesson Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). McKesson's Average Total Inventories for the three months ended in Sep. 2024 was €22,769 Mil. McKesson's Cost of Goods Sold for the three months ended in Sep. 2024 was €81,453 Mil. Hence, McKesson's Days Inventory for the three months ended in Sep. 2024 was 25.51.

The historical rank and industry rank for McKesson's Days Inventory or its related term are showing as below:

STU:MCK' s Days Inventory Range Over the Past 10 Years
Min: 25.16   Med: 29.14   Max: 30.13
Current: 26.44

During the past 13 years, McKesson's highest Days Inventory was 30.13. The lowest was 25.16. And the median was 29.14.

STU:MCK's Days Inventory is ranked better than
80.77% of 104 companies
in the Medical Distribution industry
Industry Median: 57.26 vs STU:MCK: 26.44

McKesson's Days Inventory declined from Sep. 2023 (25.94) to Sep. 2024 (25.51).

Inventory Turnover measures how fast the company turns over its inventory within a year. McKesson's Inventory Turnover for the three months ended in Sep. 2024 was 3.58.

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 three months ended in Sep. 2024 was 0.27.


McKesson Days Inventory Historical Data

The historical data trend for McKesson's Days Inventory 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 Days Inventory Chart

McKesson Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Days Inventory
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.56 30.09 26.56 26.15 25.35

McKesson Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Days Inventory 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 25.94 26.08 27.01 27.87 25.51

Competitive Comparison of McKesson's Days Inventory

For the Medical Distribution subindustry, McKesson's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


McKesson's Days Inventory Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, McKesson's Days Inventory distribution charts can be found below:

* The bar in red indicates where McKesson's Days Inventory falls into.



McKesson Days Inventory Calculation

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

McKesson's Days Inventory for the fiscal year that ended in Mar. 2024 is calculated as

Days Inventory (A: Mar. 2024 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (A: Mar. 2023 ) + Total Inventories (A: Mar. 2024 )) / count ) / Cost of Goods Sold (A: Mar. 2024 )*Days in Period
=( (18391.394 + 19447.88) / 2 ) / 272433.16*365
=18919.637 / 272433.16*365
=25.35

McKesson's Days Inventory for the quarter that ended in Sep. 2024 is calculated as:

Days Inventory (Q: Sep. 2024 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (Q: Jun. 2024 ) + Total Inventories (Q: Sep. 2024 )) / count ) / Cost of Goods Sold (Q: Sep. 2024 )*Days in Period
=( (23755.459 + 21782.576) / 2 ) / 81453.103*365 / 4
=22769.0175 / 81453.103*365 / 4
=25.51

* 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.


McKesson  (STU:MCK) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

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

McKesson's Inventory Turnover for the three months ended in Sep. 2024 is calculated as

2. 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 three months ended in Sep. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories / Revenue
=22769.0175 / 84379.551
=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

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


McKesson Days Inventory Related Terms

Thank you for viewing the detailed overview of McKesson's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.


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 us 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 us pharmaceutical wholesale industry. Outside the us 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.