McKesson Corporation cash flow to debt ratio of 71.45% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

McKesson Corporation's free cash flow has increased 9.43% from $5.23B last year to $5.72B, signaling increasing performance

McKesson Corporation's debt to equity ratio is -2.76, signaling that the company spent its equity and risk bankruptcy.

McKesson Corporation's debt to equity ratio is -2.76, signaling that the company spent its equity and risk bankruptcy.

McKesson Corporation has a net debt to EBITDA ratio of 0.65x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

McKesson Corporation's interest coverage ratio of 43.49 indicates that earnings with good margin can cover interest payments on company debt

McKesson Corporation's profit margin has increased (21.75%) in the last year from 0.92% to 1.12%, signaling increasing performance

McKesson Corporation's short-term liabilities of $67.02B exceed its short-term assets of $57.21B, signaling financial risk

McKesson Corporation's return on assets of 5.20% is higher than the 5.00% threshold, indicating efficient asset utilization

McKesson Corporation's return on equity of -194.39%, is lower than 15.00%, indicating bad performance

McKesson Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

McKesson Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

McKesson Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

McKesson Corporation has a free cash flow yield of 5.55%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

McKesson Corporation's yearly earnings has increased 44.52% since last year from $3.29B to $4.76B, signaling increasing performance

McKesson Corporation's yearly revenue has increased 12.36% since last year from $359.05B to $403.43B, signaling increasing performance

ROIC 27.91% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

McKesson Corporation's 3-year revenue CAGR of 13.39% is positive, indicating growing revenue over the past 3 years

McKesson Corporation had revenue growth in 5 out of 5 years, indicating consistent revenue performance

McKesson Corporation had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

McKesson Corporation is overvalued relative to its fair value price of 629.89 based on Discounted Cash Flow model

McKesson Corporation has an earnings yield of 4.40%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

McKesson Corporation is overvalued relative to its fair value price of 284.04 based on EBITDA multiple model

McKesson Corporation has an EV/EBITDA ratio of 15.00x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

McKesson Corporation is overvalued relative to its fair value price of 809.05 based on Earnings Fair Value model

McKesson Corporation had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

McKesson Corporation has negative shareholder equity; price-to-book is not meaningful and the check fails

McKesson Corporation has a price-to-sales ratio of 0.25x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue