McKesson Corporation stock research
FY2024 Q4
McKesson (MCK) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit rose relative to both periods, and cost of revenue declined sequentially while rising year over year, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q4
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit rose relative to both periods, and cost of revenue declined sequentially while rising year over year, resulting in an improved gross margin.
- The strongest observable driver was a proportionally larger decrease in cost of revenue compared to the decline in revenue, which expanded gross profit and margin sequentially.
- Compared to the prior quarter, revenue was lower while gross profit and margin were higher. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
4.7%
Gross profit
$3.6B
Revenue
$76.4B
Cost of revenue
$72.8B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $74.5B | $3.0B | $71.5B | 4.1% |
| Sep 30, 2023 | $77.2B | $3.1B | $74.1B | 4.0% |
| Dec 31, 2023 | $80.9B | $3.2B | $77.7B | 3.9% |
| Mar 31, 2024 | $76.4B | $3.6B | $72.8B | 4.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.8 pts
Year-over-year change
Mar 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was a proportionally larger decrease in cost of revenue compared to the decline in revenue, which expanded gross profit and margin sequentially.
Compared to the prior quarter, revenue was lower while gross profit and margin were higher. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin also higher.
Monitor inventory days, which decreased year over year, as changes in inventory turnover may influence future cost of revenue trends.