McKesson Corporation — Earnings Quality Grade A
MCK · Healthcare
Strong financial health
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 23 days, change -0 days YoY
AR growth 14.6% vs revenue growth 16.2%
Revenue 16.2%, CFFO 41.1%. Cash follows revenue
Expense Quality
Inventory 8.8% vs COGS 16.8%. Normal
CapEx growth 25.0% vs revenue 16.2%. Normal
SG&A/Gross Profit = 63.9%. Normal
Gross margin 3.7%, change -0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.85. Profits backed by cash
FCF $5.2B, FCF/NI = 1.59
Accruals ratio = -3.7%. Low accruals
Cash $5.7B covers 77% of debt $7.4B
Balance Sheet Health
Goodwill+Intangibles $11.5B = -554% of equity. Manageable
Debt/EBITDA = 1.4x. Healthy
Other assets 24.7% vs revenue 16.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
M-Score = -2.48 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09