Summary
McKesson Corporation's 2015 10-K filing reveals a year of significant revenue growth, primarily driven by the acquisition of Celesio AG, which expanded its international footprint. The company's Distribution Solutions segment continues to be the dominant revenue generator, accounting for approximately 98% of total revenues. While the company reported strong revenue increases, it also faced increased operating expenses, partly due to acquisition-related costs and a significant settlement charge for controlled substance distribution claims. Despite these operational costs, McKesson demonstrated a commitment to shareholder returns through continued dividend payments and share repurchases. The company's strategic acquisitions and diverse business offerings position it as a major player in the healthcare distribution and technology sectors. However, investors should remain aware of the competitive landscape and the ongoing regulatory environment within the healthcare industry, which could impact future performance.
Financial Highlights
57 data points| Revenue | $179.04B |
| Cost of Revenue | $167.63B |
| Gross Profit | $11.41B |
| R&D Expenses | $392.00M |
| SG&A Expenses | $7.90B |
| Operating Expenses | $8.44B |
| Operating Income | $2.97B |
| Net Income | $1.48B |
| EPS (Basic) | $6.37 |
| EPS (Diluted) | $6.27 |
| Shares Outstanding (Basic) | 232.00M |
| Shares Outstanding (Diluted) | 235.00M |
Key Highlights
- 1Revenue increased significantly by 30% to $179.0 billion in fiscal year 2015, largely due to the acquisition of Celesio AG.
- 2The Distribution Solutions segment remained the core revenue driver, representing 98% of total revenues, with strong performance in North America pharmaceutical distribution.
- 3Operating expenses increased by 43% to $8.44 billion, impacted by acquisition-related expenses, intangible asset amortization, and a $150 million charge for settling controlled substance distribution claims.
- 4Net income attributable to McKesson Corporation increased by 17% to $1.476 billion, with diluted earnings per share from continuing operations at $7.54.
- 5The company repurchased 1.5 million shares for $340 million in fiscal year 2015 and authorized an additional $500 million in share repurchases.
- 6The acquisition of Celesio AG expanded McKesson's global reach, with international operations accounting for 20% of consolidated revenues in fiscal year 2015.
- 7The company continues to manage its debt, with a debt-to-capital ratio of 55.2% at the end of fiscal year 2015.