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McKesson (McKesson) Earnings Yield (Joel Greenblatt) %

: 5.69% (As of Dec. 2023)
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McKesson's Enterprise Value for the quarter that ended in Dec. 2023 was $66,836 Mil. McKesson's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $3,802 Mil. McKesson's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 5.69%.

The historical rank and industry rank for McKesson's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

MCK' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -14.19   Med: 5.21   Max: 19.8
Current: 5.07

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of McKesson was 19.80%. The lowest was -14.19%. And the median was 5.21%.

MCK's Earnings Yield (Joel Greenblatt) % is ranked worse than
59.41% of 101 companies
in the Medical Distribution industry
Industry Median: 5.66 vs MCK: 5.07

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. McKesson's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


McKesson Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for McKesson's Earnings Yield (Joel Greenblatt) % 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 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.07 4.82 -13.61 4.31 9.49

McKesson Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Earnings Yield (Joel Greenblatt) % 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 7.97 9.49 7.91 7.37 5.69

Competitive Comparison

For the Medical Distribution subindustry, McKesson's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Distribution

For the Medical Distribution industry and Healthcare sector, McKesson's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where McKesson's Earnings Yield (Joel Greenblatt) % falls into.



McKesson Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

McKessons Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=4878/51406.8
=9.49 %

McKesson's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,802 Mil.



McKesson  (NYSE:MCK) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


McKesson Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of McKesson's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


McKesson (McKesson) Business Description

Industry
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