Mckesson Corp. Q3 FY2024 results: revenue $80.9 billion, up 14.8% on the year

Mckesson Corp. (MCK) reported revenue of $80.9 billion for Q3 FY2024, the quarter ended 31 December 2023, up 14.8% on the same quarter a year earlier. Net income was $589 million, down 45.4% on the year, and diluted earnings per share $4.42. The figures are the company's own, from the 10-Q it filed with the SEC on 8 February 2024.

Revenue$80.9 billionup 14.8%

Net income$589 milliondown 45.4%

Diluted EPS$4.42

QuarterQ3 FY2024ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Revenue	80,898	77,215	n/a	n/a
Cost of revenue	77,746	74,146	n/a	n/a
Gross profit	3,152	3,069	n/a	n/a
Gross margin	3.9%	4.0%	n/a
Selling, general and administrative	2,506	2,092	n/a	n/a
Operating income	642	951	n/a	n/a
Operating margin	0.8%	1.2%	n/a
Interest expense	64.0	61.0	n/a	n/a
Pre-tax income	612	916	n/a	n/a
Income tax	-18.0	213	n/a	n/a
Effective tax rate	-2.9%	23.3%	n/a
Net income	589	664	n/a	n/a
Net margin	0.7%	0.9%	n/a
Diluted EPS	$4.42	$4.92	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Operating cash flow	254	965	n/a	n/a
Capital expenditure	90.0	75.0	n/a	n/a
Free cash flow	164	890	n/a	n/a
Free cash flow margin	0.2%	1.2%	n/a
Depreciation and amortisation	124	127	n/a	n/a
Buybacks	842	809	n/a	n/a
Dividends paid	83.0	75.0	n/a	n/a
Dividend per share	$0.62	$0.62	n/a	n/a
Diluted shares, weighted	133m	135m	n/a	n/a
Shares outstanding at period end	131m	133m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Total assets	66,512	66,091	n/a	n/a
Cash and equivalents	1,982	2,524	n/a	n/a
Receivables	23,066	22,494	n/a	n/a
Inventory	22,020	21,945	n/a	n/a
Goodwill	9,973	9,934	n/a	n/a
Long-term debt	5,673	5,584	n/a	n/a
Long-term debt including finance leases	5,625	5,535	n/a	n/a
Operating lease liabilities	1,421	1,436	n/a	n/a
Shareholders' equity	-2,053	-1,828	n/a	n/a

Quarterly results, the last 12 quarters

	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	77,215	80,898	76,355	79,283	93,651	95,294	90,823	97,827	103,150	106,158	96,295	105,380
Cost of revenue	74,146	77,746	72,770	76,131	90,403	92,010	87,184	94,548	99,608	102,473	92,251	101,695
Gross profit	3,069	3,152	3,585	3,152	3,248	3,284	3,639	3,279	3,542	3,685	4,044	3,685
Gross margin	4%	4%	5%	4%	3%	3%	4%	3%	3%	3%	4%	3%
SG&A	2,092	2,506	2,189	2,001	2,503	2,028	1,975	2,196	2,074	2,030	1,796	2,264
Operating income	951	642	1,216	1,029	578	1,224	1,591	1,036	1,407	1,619	2,150	1,319
Operating margin	1%	1%	2%	1%	1%	1%	2%	1%	1%	2%	2%	1%
Interest expense	61.0	64.0	80.0	75.0	78.0	67.0	45.0	49.0	74.0	63.0	61.0	77.0
Pre-tax income	916	612	1,170	1,084	534	1,226	1,515	1,051	1,395	1,630	2,125	1,308
Tax rate	23%	-3%	29%	11%	46%	24%	14%	21%	17%	23%	13%	21%
Net income	664	589	791	915	241	879	1,260	784	1,110	1,186	1,682	614
Net margin	1%	1%	1%	1%	0%	1%	1%	1%	1%	1%	2%	1%
Diluted EPS	$4.92	$4.42	$6.03	$7.00	$1.87	$6.95	$9.90	$6.25	$8.92	$9.59	$13.62	$5.15
Operating cash flow	965	254	4,147	-1,380	2,100	-2,383	7,748	-918	2,420	1,232	3,421	-220
Capital expenditure	75.0	90.0	188	106	136	126	169	111	106	108	111	112
Free cash flow	890	164	3,959	-1,486	1,964	-2,509	7,579	-1,029	2,314	1,124	3,310	-332
Buybacks	809	842	678	527	1,492	827	300	581	818	680	2,671	2,530
Dividends paid	75.0	83.0	82.0	82.0	80.0	92.0	91.0	90.0	89.0	101	101	102
Shares outstanding	133m	131m	130m	130m	127m	125m	125m	124m	123m	122m	120m	117m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 December 2023, filed 8 February 2024, accession 0000927653-24-000021: the filing on EDGAR. All of Mckesson Corp.'s filings: EDGAR company page.

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