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McKesson (McKesson) Profitability Rank : 7 (As of Dec. 2023)


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What is McKesson Profitability Rank?

McKesson has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

McKesson's Operating Margin % for the quarter that ended in Dec. 2023 was 0.80%. As of today, McKesson's Piotroski F-Score is 5.


Competitive Comparison of McKesson's Profitability Rank

For the Medical Distribution subindustry, McKesson's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution in the Medical Distribution Industry

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

* The bar in red indicates where McKesson's Profitability Rank falls into.



McKesson Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

McKesson has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

McKesson's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=646 / 80898
=0.80 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

McKesson has an F-score of 5 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

McKesson Corp operating margin has been in a 5-year decline. The average rate of decline per year is -1.2%.

4. Consistency of the profitability

5. Predictability Rank


McKesson Profitability Rank Related Terms

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


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