source: fortune.com

This report provides the last five years revenues and revenue growth of McKesson Corp (MCK) from 2012 to 2016. McKesson generated a total of $190.9 billion revenues during 2016. McKesson reported a revenue growth of 6.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in March.

McKesson Revenues From 2012 to 2016

Here are the revenues and the revenue growth details of McKesson during the last five years:

  • McKesson generated a total of $122.3 billion revenues during 2012. McKesson reported a revenue growth of 9.1% year-over-year during 2012.
  • McKesson generated a total of $122.2 billion revenues during 2013. McKesson reported a revenue growth of -0.1% year-over-year during 2013.
  • McKesson generated a total of $137.4 billion revenues during 2014. McKesson reported a revenue growth of 12.4% year-over-year during 2014.
  • McKesson generated a total of $179 billion revenues during 2015. McKesson reported a revenue growth of 30.3% year-over-year during 2015.
  • McKesson generated a total of $190.9 billion revenues during 2016. McKesson reported a revenue growth of 6.6% year-over-year during 2016.
source: prnewswire.com

Why Analyse Revenue Growth?

Revenue growth is the most commonly analyzed financial metric. Revenue Growth is the percent increase (or decrease) of a company’s revenue between two time periods. It is computed by using the following formula: ((revenues during the time period two – revenues during the time period one) / revenues during the time period one)*100. If the time periods are two consecutive years, then the revenue growth is referred to as the annual revenue growth year-over-year. If the time periods are two consecutive quarters, then the revenue growth is referred to as the quarterly revenue growth quarter-over-quarter. If the time periods refer to the same quarter in the two consecutive years, then the revenue growth is referred to as quarterly revenue growth year-over-year. In case the time periods are two non-consecutive years, then the revenue CAGR (Commutative Annual Growth Rate) is computed.

Revenue growth analysis is important for a number of reasons. First, it helps in understanding how a business is performing. If the revenue growth rates are positive, it means the business is performing well and the revenues are increasing. If the revenue growth rates are negative, it means the revenues are declining and the company needs to take measures to increase them. If they don’t, the company will continue to shrink. Second, a company’s historical revenue growth analysis along with the market size and market share analysis helps in forecasting the future revenues of a company. Third, a comparison of a company’s growth rates with its competitors helps in determining who is winning more business. A revenue growth higher than the industry average translates into increasing market share. Companies with very high revenue growth rates have the potential to be the industry disrupters.

source: revenuesandprofits.com

McKesson Ranking

With $190.9 billion revenues, McKesson ranked number 5 in the R&P; Research list of top-3000 public companies in the US by revenues during 2016. Each one of the top-3000 companies generated more than $50 million of annual revenues during 2016.

The top-20 companies in the US by revenues during 2016 were:

  1. Walmart ($482.1 billion)
  2. ExxonMobil ($226.1 billion)
  3. Berkshire Hathaway ($223.6 billion)
  4. Apple ($215.6 billion)
  5. McKesson ($190.9 billion)
  6. UnitedHealth Group ($184.8 billion)
  7. CVS Health ($177.5 billion)
  8. General Motors ($166.4 billion)
  9. AT&T; ($163.8 billion)
  10. Ford Motor ($151.8 billion)
  11. AmerisourceBergen ($146.8 billion)
  12. Amazon ($136 billion)
  13. Verizon ($126 billion)
  14. General Electric ($123.7 billion)
  15. Cardinal Health ($121.5 billion)
  16. Costco ($118.7 billion)
  17. Walgreens Boots Alliance ($117.4 billion)
  18. Chevron ($114.5 billion)
  19. Kroger ($109.8 billion)
  20. Express Scripts Holding ($100.3 billion)
source: fortune.com

For the purpose of performance benchmarking of a company with a sector or industry average, R&P; Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

For example, Healthcare sector group is comprised of Life Sciences sector and Healthcare Services sector. Life Sciences sector is comprised of following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments. Healthcare Services sector is comprised of following industries: Medication Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services.

McKesson is associated with Healthcare Sector Group, Healthcare Services Sector and Medication Stores, PBM and Distributors Industry.

With $190.9 billion revenues, McKesson ranked number 1 of all the companies in the US Healthcare sector group. There were a total of 290 public companies in the US Healthcare sector group that had revenues greater than $50 million during 2016.

The top-10 companies in the US Healthcare sector group by revenues during 2016 were:

  1. McKesson ($190.9 billion)
  2. UnitedHealth Group ($184.8 billion)
  3. CVS Health ($177.5 billion)
  4. AmerisourceBergen ($146.8 billion)
  5. Cardinal Health ($121.5 billion)
  6. Walgreens Boots Alliance ($117.4 billion)
  7. Express Scripts Holding ($100.3 billion)
  8. Anthem ($84.9 billion)
  9. J&J; ($71.9 billion)
  10. Aetna ($63.2 billion)
source: entrepreneur.com

Healthcare sector group is comprised of the following sectors: Life Sciences; Healthcare Services.

With $190.9 billion revenues, McKesson ranked number 1 of all the companies in the US Healthcare Services sector. There were a total of 93 public companies in the US Healthcare Services sector that had revenues greater than $50 million during 2016.

The top-10 companies in the US Healthcare Services sector by revenues during 2016 were:

  1. McKesson ($190.9 billion)
  2. UnitedHealth Group ($184.8 billion)
  3. CVS Health ($177.5 billion)
  4. AmerisourceBergen ($146.8 billion)
  5. Cardinal Health ($121.5 billion)
  6. Walgreens Boots Alliance ($117.4 billion)
  7. Express Scripts Holding ($100.3 billion)
  8. Anthem ($84.9 billion)
  9. Aetna ($63.2 billion)
  10. Humana ($54.4 billion)
source: adageindia.in

Healthcare Services sector is comprised of the following industries: Medication Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services. The definitions for each of the industries is as follows:

  • Medication Stores, PBM and Distributors industry includes nationwide medication store chains, pharmacy benefit management (PBM) companies, and medication distributors. Medication stores also offer walk-in clinics and related pharmacy services. Distributors distribute branded and generic pharmaceutical and other healthcare products to hospitals, pharmacies and other healthcare providers. PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with medication manufacturers, and processing and paying prescription medication claims.
  • Healthcare Payers industry includes healthcare insurance companies that finance or reimburse the cost of health services. These companies also offer collaborative care, population health management, healthcare technology, Pharmacy Benefit Management, analytics, consulting and administrative services.
  • Healthcare Providers industry consist primarily of hospitals but recent changes in the health services industry have contributed to both increasing numbers of other types of facility providers. Companies in this industry include traditional healthcare providers and emerging healthcare facility providers like ambulatory surgery centers, behavioral healthcare facilities, dialysis clinics, home health care companies and others.
  • Medical Software industry includes companies that offer any software item or system used within a healthcare context. These companies offer standalone software used for diagnostic, therapeutic purposes, clinical financial and operational purposes.
  • Healthcare Research Services industry includes companies that offer biopharmaceutical development services, commercial outsourcing services; commercial pharmaceutical sales and service organizations, consulting, health information analytics and technology consulting.
source: evaapplications.com

With $190.9 billion revenues, McKesson ranked number 1 of all the companies in the US Medication Stores, PBM and Distributors industry. There were a total of 14 public companies in the US Medication Stores, PBM and Distributors industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Medication Stores, PBM and Distributors industry by revenues during 2016 were:

  1. McKesson ($190.9 billion)
  2. CVS Health ($177.5 billion)
  3. AmerisourceBergen ($146.8 billion)
  4. Cardinal Health ($121.5 billion)
  5. Walgreens Boots Alliance ($117.4 billion)
  6. Express Scripts Holding ($100.3 billion)
  7. Rite Aid ($30.7 billion)
  8. Henry Schein ($11.6 billion)
  9. Owens & Minor ($9.7 billion)
  10. Patterson Companies ($5.4 billion)

Companies Segmentation

To identify and analyze high/low growth or most/least profitable similar-size companies in different sectors or industries, R&P; research classifies all companies into different segments based upon their revenues, revenue growth, and net profit margins.

source: memphisflyer.com

Based upon their annual revenues, the companies are classified into one of the following four segments:

  1. Mega companies, having revenues greater than $50 billion.
  2. Very Large companies, having revenues between $10 billion and $50 billion.
  3. Large companies, having revenues between $1 billion and $10 billion.
  4. Mid-size companies, having revenues between $50 million and $1 billion.

With $190.9 billion revenues, McKesson was in the Mega companies revenue segment during 2016. There were a total of 54 companies in the Mega companies revenue segment during 2016.

Based upon their annual revenue growth, the companies are classified into one of the following eight segments:

  1. Very High positive growth companies, having annual revenue growth greater than 50%.
  2. High positive growth companies, having annual revenue growth between 20% and 50%.
  3. Medium positive growth companies, having annual revenue growth between 5% and 20%.
  4. Low positive growth companies, having annual revenue growth between 0% and 5%.
  5. Low negative growth companies, having annual revenue growth between -5% and 0%.
  6. Medium negative growth companies, having annual revenue growth between -20% and -5%.
  7. High negative growth companies, having annual revenue growth between -50% and -20%.
  8. Very High negative growth companies, having annual revenue growth less than -50%.

With 6.6% revenue growth year-over-year, McKesson was in the Medium positive revenue growth segment during 2016. There were a total of 876 companies in the Medium positive revenue growth segment during 2016. Of the US top-3000 companies, 1985 (nearly two-third of the total) had positive revenue growth and 1015 (nearly one-third of the total) had negative revenue growth during 2016.

source: linkedin.com

Based upon their annual net profit margin, the companies are classified into one of the following eight segments:

  1. Very High positive margin companies, having net profit margin greater than 50%.
  2. High positive margin companies, having net profit margin between 20% and 50%.
  3. Medium positive margin companies, having net profit margin between 5% and 20%.
  4. Low positive margin companies, having net profit margin between 0% and 5%.
  5. Low negative margin companies, having net profit margin between -5% and 0%.
  6. Medium negative margin companies, having net profit margin between -20% and -5%.
  7. High negative margin companies, having net profit margin between -50% and -20%.
  8. Very High negative margin companies, having net profit margin less than -50%.

With a net margin of 1.2%, McKesson was in the Low positive net profit margin segment during 2016. There were a total of 707 companies in the Low positive net profit margin segment during 2016. Of the US top-3000 companies, 2244 (nearly three-fourth of the total) had positive net profit margin and 756 (nearly one-fourth of the total) had negative net profit margin during 2016.

Company Business Summery

McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. The company operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. The McKesson Distribution Solutions segment distributes branded and generic pharmaceutical medications, and other healthcare-related products; and provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. This segment also provides specialty pharmaceutical solutions for pharmaceutical manufacturers; and medical-surgical supply distribution, logistics, and other services to healthcare providers. In addition, this segment operates retail pharmacy chains in Europe and Canada, as well as supports independent pharmacy networks in North America and Europe; and supplies integrated pharmacy management systems, automated dispensing systems, and related services to retail, outpatient, central fill, specialty, and mail order pharmacies. This segment serves retail national accounts, including national and regional chains, food/medication combinations, mail order pharmacies, and mass merchandisers; and institutional healthcare providers, such as hospitals, health systems, integrated delivery networks, and long-term care providers, as well as offers its services to pharmaceutical manufacturers. The McKesson Technology Solutions segment provides clinical, financial, and supply chain management solutions to healthcare organizations. McKesson Corporation was founded in 1833 and is headquartered in San Francisco, California.

source: twitter.com

Data Source

The chart and the data on this page are sourced from the R&P; Research Industry Intelligence Platform. The platform provides the key financial metrics for all the public companies in the United States. The platform empowers users to compare last five or 15 years financial data of a company with the other companies or the industry averages. This benchmarking exercise yields powerful insights that can drive better business decisions.

INDUSTRY PEERS AND COMPETITORS OF MCKESSON

CVS Health (CVS) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

CVS Health Corp with $178 billion revenues in the year 2016 was the number 2 Medication Stores, PBM and Distributors company. Read this report to know the top competitors of CVS Health and identify growth and cost optimization opportunities of CVS Health

AmerisourceBergen (ABC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…

AmerisourceBergen Corp with $147 billion revenues in the year 2016 was the number 3 Medication Stores, PBM and Distributors company. Read this report to know the top competitors of AmerisourceBergen and identify growth and cost optimization opportunities of AmerisourceBergen

Cardinal Health (CAH) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

Cardinal Health Inc with $122 billion revenues in the year 2016 was the number 4 Medication Stores, PBM and Distributors company. Read this report to know the top competitors of Cardinal Health and identify growth and cost optimization opportunities of Cardinal Health

Walgreens Boots Alliance (WBA) Business Analysis – Analyze Historical Performance, Strategic…

Walgreens Boots Alliance, Inc. with $117 billion revenues in the year 2016 was the number 5 Medication Stores, PBM and Distributors company. Read this report to know the top competitors of Walgreens Boots Alliance and identify growth and cost optimization opportunities of Walgreens Boots Alliance

Express Scripts Holding (ESRX) Business Analysis – Analyze Historical Performance, Strategic…

Express Scripts Holding Co. with $100 billion revenues in the year 2016 was the number 6 Medication Stores, PBM and Distributors company. Read this report to know the top competitors of Express Scripts Holding and identify growth and cost optimization opportunities of Express Scripts Holding

Rite Aid (RAD) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

Rite Aid Corp with $31 billion revenues in the year 2016 was the number 7 Medication Stores, PBM and Distributors company. Read this report to know the top competitors of Rite Aid and identify growth and cost optimization opportunities of Rite Aid

REVENUES ANALYSIS

McKesson (MCK) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of McKesson Corp (MCK) from 2012 to 2016. McKesson generated a total of $190.9 billion revenues during 2016. McKesson reported a revenue growth of 6.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in March.

McKesson (MCK) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of McKesson Corp (MCK) from 2002 to 2016. McKesson generated a total of $190.9 billion revenues during 2016. McKesson reported a revenue growth of 6.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in March.

McKesson (MCK) Revenue Growth Comparison With Industry Growth From 2012 To…

This report provides a comparison of McKesson Corp (MCK) revenue growth with Medication Stores, PBM and Distributors industry growth during the last five years from 2012 to 2016. McKesson reported a revenue growth of 6.6% year-over-year during 2016. The Medication Stores, PBM and Distributors industry growth was 10.3% year-over-year during 2016. McKesson growth was slower than the industry during 2016.

PROFIT ANALYSIS

McKesson (MCK) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of McKesson Corp (MCK) from 2012 to 2016. McKesson reported a total net income of $2.3 billion during 2016. McKesson generated a total of $190.9 billion revenues during 2016. McKesson net profit margin was 1.2% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in March.

McKesson (MCK) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of McKesson Corp (MCK) from 2002 to 2016. McKesson reported a total net income of $2.3 billion during 2016. McKesson generated a total of $190.9 billion revenues during 2016. McKesson net profit margin was 1.2% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in March.

McKesson (MCK) Net Profit Margin Comparison With Industry From 2012 To…

This report provides a comparison of McKesson Corp (MCK) net profit margin with Medication Stores, PBM and Distributors industry net profit margin during the last five years from 2012 to 2016. McKesson reported a net profit margin of 1.2% during 2016. The Medication Stores, PBM and Distributors industry net profit margin was 2.1% during 2016. McKesson was less profitable than the industry during 2016.

COST EXPENSES ANALYSIS

McKesson (MCK) Cost of Sales (COGS) Analysis From 2012 To 2016

This report provides the last five years cost of sales (COGS) analysis of McKesson Corp (MCK) from 2012 to 2016. McKesson spent a total of $179.5 billion on COGS during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson spent 94% of its total revenues on COGS during 2016. The cost of sales (COGS) numbers are for the fiscal year ending in March.

McKesson (MCK) Research & Development (R&D) Spending Analysis From 2012 To…

This report provides the last five years research and development (R&D;) expenses of McKesson Corp (MCK) from 2012 to 2016. McKesson spent a total of $392 million on research and development (R&D;) activities during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson spent 0.2% of its total revenues on R&D; activities during 2016. The R&D; spending numbers are for the fiscal year ending in March.

McKesson (MCK) Sales, Marketing, General & Administrative (SG&A) Spending Analysis From…

This report provides the last five years sales, marketing, general & administrative (SG&A;) expenses of McKesson Corp (MCK) from 2012 to 2016. McKesson spent a total of $7.3 billion on sales, marketing, general, and administrative (SG&A;) activities during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson spent 3.8% of its total revenues on SG&A; activities during 2016. The SG&A; spending numbers are for the fiscal year ending in March.

WORKING CAPITAL ANALYSIS

McKesson (MCK) Inventory Spending Analysis From 2012 To 2016

This report provides the last five years inventory spending analysis of McKesson Corp (MCK) from 2012 to 2016. McKesson invested a total of $15.3 billion on inventories during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson invested 8% of its total revenues on inventories during 2016. The inventory numbers are for the fiscal year ending in March.

McKesson (MCK) Accounts Receivable (A/R) Analysis From 2012 To 2016

This report provides the last five years Accounts Receivable (A/R) analysis of McKesson Corp (MCK) from 2012 to 2016. McKesson invested a total of $18 billion on accounts receivable during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson invested 9.4% of its total revenues on accounts receivable during 2016. The accounts receivable numbers are for the fiscal year ending in March.

McKesson (MCK) Accounts Payable (A/P) Analysis From 2012 To 2016

This report provides the last five years Accounts Payable (A/P) analysis of McKesson Corp (MCK) from 2012 to 2016. McKesson invested a total of $28.6 billion on accounts payable during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson invested 15% of its total revenues on accounts payable activities during 2016. The accounts payable numbers are for the fiscal year ending in March.

ASSET MANAGEMENT ANALYSIS

McKesson (MCK) Property, Plant & Equipment (PP&E) Investment Analysis From 2012…

This report provides the last five years property, plant & equipment (PP&E;) investment analysis of McKesson Corp (MCK) from 2012 to 2016. McKesson invested a total of $2.3 billion on property, plant & equipment (PP&E;) activities during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson invested 1.2% of its total revenues on PP&E; activities during 2016. The PP&E; investment numbers are for the fiscal year ending in March.

McKesson (MCK) Intangible Assets Analysis From 2012 To 2016

This report provides the last five years Intangible assets analysis of McKesson Corp (MCK) from 2012 to 2016. McKesson invested a total of $12.8 billion on Intangible assets during 2016. McKesson generated a total of $190.9 billion revenues during 2016. As a percentage of revenues, McKesson invested 6.7% of its total revenues on intangible assets during 2016. The Intangible asset numbers are for the fiscal year ending in March.