McKesson Corporation stock research
FY2024 Q2
McKesson (MCK) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was relatively stable year over year but slightly lower than the prior quarter, while cost of revenue rose, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was relatively stable year over year but slightly lower than the prior quarter, while cost of revenue rose, leading to a weakened gross margin.
- The primary observable driver of the gross margin change was the increase in cost of revenue relative to revenue, as gross profit remained nearly unchanged.
- Compared to the prior quarter, gross margin weakened as revenue growth was accompanied by a larger increase in cost of revenue. Compared to the same quarter last year, gross margin also weakened, with revenue rising but gross profit staying nearly flat.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
4.0%
Gross profit
$3.1B
Revenue
$77.2B
Cost of revenue
$74.1B
Quarter-over-quarter change
-0.1 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% |
| Sep 30, 2023 | $77.2B | $3.1B | $74.1B | 4.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.1 pts
Year-over-year change
Sep 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 gross margin change was the increase in cost of revenue relative to revenue, as gross profit remained nearly unchanged.
Compared to the prior quarter, gross margin weakened as revenue growth was accompanied by a larger increase in cost of revenue. Compared to the same quarter last year, gross margin also weakened, with revenue rising but gross profit staying nearly flat.
Monitor the trend in cost of revenue relative to revenue in upcoming quarters.