GURUFOCUS.COM » STOCK LIST » USA » NYSE » McKesson Corp (NYSE:MCK) » Definitions » Interest Coverage
Switch to:

McKesson Interest Coverage

: 23.64 (As of Jun. 2022)
View and export this data going back to 1987. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. McKesson's Operating Income for the three months ended in Jun. 2022 was $1,064 Mil. McKesson's Interest Expense for the three months ended in Jun. 2022 was $-45 Mil. McKesson's interest coverage for the quarter that ended in Jun. 2022 was 23.64. The higher the ratio, the stronger the company's financial strength is.

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

MCK' s Interest Coverage Range Over the Past 10 Years
Min: 8.34   Med: 10.82   Max: 16.42
Current: 16.42


MCK's Interest Coverage is ranked better than
58.06% of 62 companies
in the Medical Distribution industry
Industry Median: 11.83 vs MCK: 16.42

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


McKesson Interest Coverage Historical Data

The historical data trend for McKesson's Interest Coverage 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 Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.32 12.56 11.41 15.20 14.57

McKesson Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 16.33 15.18 7.88 18.30 23.64

Competitive Comparison

For the Medical Distribution subindustry, McKesson's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where McKesson's Interest Coverage falls into.



McKesson Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

McKesson's Interest Coverage for the fiscal year that ended in Mar. 2022 is calculated as

Here, for the fiscal year that ended in Mar. 2022, McKesson's Interest Expense was $-178 Mil. Its Operating Income was $2,593 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,446 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2022 )/Interest Expense (A: Mar. 2022 )
=-1*2593/-178
=14.57

McKesson's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, McKesson's Interest Expense was $-45 Mil. Its Operating Income was $1,064 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,340 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1064/-45
=23.64

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


McKesson  (NYSE:MCK) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


McKesson Interest Coverage Related Terms

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


McKesson Business Description

McKesson logo
Address
6555 State Highway 161, Irving, TX, USA, 75039
McKesson is a leading wholesaler of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with AmerisourceBergen and Cardinal Health, the three account for well over 90% of the U.S. pharmaceutical wholesale industry. McKesson is currently divesting from its pharmaceutical wholesale and distribution in Europe and Canada in order to redeploy capital to strategic growth areas in the U.S. (oncology network and ecosystem, and biopharma services). Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.
Executives
Rodgers Thomas L officer: EVP, Chief Strategy & BDO 6555 NORTH STATE HWY 161 IRVING TX 75039
Dunbar Webster Roy director 5757 N. GREEN BAY AVENUE MILWAUKEE WI 53209
Rutledge Napoleon B Jr officer: SVP, Controller & CAO 2999 WILDWOOD PARKWAY ATLANTA GA 30339
Flores Nancy officer: EVP, CIO & CTO 6555 NORTH STATE HWY 161 IRVING TX 75039
Hinton James H. director 6555 NORTH STATE HWY. 161 IRVING TX 75039
Wilson-thompson Kathleen director PO BOX 3599 BATTLE CREEK MI 49016-3599
Faber Tracy officer: EVP & Chief HR Officer 6555 NORTH STATE HWY 161 IRVING TX 75039
Tyler Brian S. officer: Chief Executive Officer MCKESSON CORPORATION 6555 STATE HWY 161 IRVING TX 75039
Schechter Lori A. officer: EVP, Chief Legal Officer & GC MCKESSON CORPORATION 6555 NORTH STATE HWY 161 IRVING TX 75039
Vitalone Britt J. officer: EVP & CFO MCKESSON CORPORATION 6555 STATE HWY 161 IRVING TX 75039
Emerson Kevin officer: SVP, Controller & CAO 6555 NORTH STATE HWY 161 IRVING TX 75039
Carmona Richard H director 1221 BROADWAY OAKLAND CA 94612
Mantia Linda Provie director C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD MINNEAPOLIS MN 55425
Martinez Maria director THE LANDMARK @ 1 MARKET STREET SUITE 300 SAN FRANCISCO CA 94105
Washington Kenneth E director 6555 STATE HWY 161 IRVING TX 75039

McKesson Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)