MCKMcKesson Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.3×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MCK?
McKesson Corporation keeps 1.6% of every revenue dollar as operating profit, against 2.0% for the median Healthcare name.
Operating margin · Healthcare median 2.0% · 12 months to Q1 2027
- Cash conversion
- 1.29×
Cash conversion · 1.91× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.0%
Share count, year on year · bought back, each share owns more of the company
- Gross margin
- 3.6%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | −2.1% |
| FY2022 | 0.77% |
| FY2023 | 1.6% |
| FY2024 | 1.3% |
| FY2025 | 1.2% |
| FY2026 | 1.5% |
Details›
- Gross margin12 months to Q1 2027
- 3.6%
- Operating margin12 months to Q1 2027
- 1.6%
- Net margin12 months to Q1 2027
- 1.1%
- Free cash flow margin
- 1.6%
- Revenue, trailing twelve months
- $411.0B
- Free cash flow, trailing twelve months
- $6.42B
- Net income, trailing twelve months
- $4.59B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Healthcare
Ranks #2 of 446 by RyuScore