McKesson Corporation stock research
FY2024 Q1
McKesson (MCK) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained relatively stable. Consequently, gross margin weakened as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2024 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained relatively stable. Consequently, gross margin weakened as cost of revenue grew at a faster pace than revenue.
- The primary observable driver of the margin change is the relationship between revenue and cost of revenue: revenue rose, but cost of revenue rose more, compressing gross margin.
- Compared to the preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Gross profit was essentially unchanged from both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
4.1%
Gross profit
$3.0B
Revenue
$74.5B
Cost of revenue
$71.5B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $68.9B | $3.1B | $65.8B | 4.4% |
| Jun 30, 2023 | $74.5B | $3.0B | $71.5B | 4.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.4 pts
Year-over-year change
Jun 30, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change is the relationship between revenue and cost of revenue: revenue rose, but cost of revenue rose more, compressing gross margin.
Compared to the preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Gross profit was essentially unchanged from both periods.
Monitor the trend in cost of revenue relative to revenue, as any further divergence could continue to pressure gross margin.