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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. McKesson's Operating Income for the three months ended in Jun. 2024 was $1,151 Mil. McKesson's Interest Expense for the three months ended in Jun. 2024 was $-75 Mil. McKesson's interest coverage for the quarter that ended in Jun. 2024 was 15.35. The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for McKesson's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for McKesson's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
McKesson Annual Data | |||||||||||||||||||||
Trend | Mar15 | Mar16 | Mar17 | Mar18 | Mar19 | Mar20 | Mar21 | Mar22 | Mar23 | Mar24 | |||||||||||
Interest Coverage | Get a 7-Day Free Trial | 11.41 | 15.20 | 14.57 | 18.48 | 16.55 |
McKesson Quarterly Data | ||||||||||||||||||||
Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
Interest Coverage | Get a 7-Day Free Trial | 24.51 | 16.02 | 10.09 | 17.45 | 15.35 |
For the Medical Distribution subindustry, McKesson's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
For the Medical Distribution industry and Healthcare sector, McKesson's Interest Coverage distribution charts can be found below:
* The bar in red indicates where McKesson's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
If Interest Expense is negative and Operating Income is positive, then
Interest Coverage | = | -1 | * | Operating Income | / | Interest Expense |
Else if Interest Expense is negative and Operating Income is negative, then
The company did not have earnings to cover the interest expense. |
Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then
The company had no debt (1). |
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
McKesson's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as
Here, for the fiscal year that ended in Mar. 2024, McKesson's Interest Expense was $-252 Mil. Its Operating Income was $4,171 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,045 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Mar. 2024 ) | / | Interest Expense (A: Mar. 2024 ) |
= | -1 | * | 4171 | / | -252 | |
= | 16.55 |
McKesson's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as
Here, for the three months ended in Jun. 2024, McKesson's Interest Expense was $-75 Mil. Its Operating Income was $1,151 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,050 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Jun. 2024 ) | / | Interest Expense (Q: Jun. 2024 ) |
= | -1 | * | 1151 | / | -75 | |
= | 15.35 |
* 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.
The higher the ratio, the stronger the company's Financial Strength is.
McKesson (NYSE:MCK) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Thank you for viewing the detailed overview of McKesson's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
Maria Martinez | director | THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105 |
Thomas L Rodgers | officer: EVP, Chief Strategy & BDO | 6555 NORTH STATE HWY 161, IRVING TX 75039 |
Britt J. Vitalone | officer: EVP & CFO | MCKESSON CORPORATION, 6555 STATE HWY 161, IRVING TX 75039 |
Susan Nowakowski | director | 14778 EL RODEO CT., RANCHO SANTA FE CA 92067 |
Rutledge Napoleon B Jr | officer: SVP, Controller & CAO | 2999 WILDWOOD PARKWAY, ATLANTA GA 30339 |
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 |
Tracy Faber | officer: EVP & Chief HR Officer | 6555 NORTH STATE HWY 161, IRVING TX 75039 |
Donald R Knauss | director | P O BOX 1734, ATLANTA GA 30301 |
Bradley E Lerman | director | MEDTRONIC, INC., 710 MEDTRONIC PKWY MSLC300, MINNEAPOLIS MN 55432 |
Dominic J Caruso | director | JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933 |
Webster Roy Dunbar | director | 5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209 |
James H. Hinton | director | 6555 NORTH STATE HWY. 161, IRVING TX 75039 |
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