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Published byMark Jenkins Modified over 9 years ago
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PRESENTED BY: MATTHEW PETRELLA MCKESSON CORP. FINANCIAL ANALYSIS
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MCKESSON CORP. COMPANY PROFILE Founded in 1833 and headquartered in San Francisco, CA. In the “drugs wholesale” industry with 37,700 full-time employees. Largest pharmaceutical distributor in North America. Nation’s leading health care IT company. Software and hardware technology installed in over 70% of the nation’s hospitals. Publically traded on the NYSE under the symbol MCK.
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COMMON SIZE BALANCE SHEET ASSETS (ALL FIGURES IN MILLIONS)
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COMMON SIZE BALANCE SHEET LIABILITIES & STOCKHOLDERS’ EQUITY (ALL FIGURES IN MILLIONS)
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BALANCE SHEET — VERTICAL ANALYSIS ASSETS
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BALANCE SHEET — VERTICAL ANALYSIS LIABILITIES & STOCKHOLDERS’ EQUITY
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BALANCE SHEET — HORIZONTAL ANALYSIS ASSETS
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BALANCE SHEET — HORIZONTAL ANALYSIS LIABILITIES & STOCKHOLDERS’ EQUITY
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COMMON SIZE INCOME STATEMENT (ALL FIGURES IN MILLIONS)
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INCOME STATEMENT VERTICAL ANALYSIS
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INCOME STATEMENT HORIZONTAL ANALYSIS
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PROFITABILITY ANALYSIS
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LIQUIDITY ANALYSIS
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DEBT ANALYSIS
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INVESTOR ANALYSIS
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MCKESSON CORP. FINAL ANALYSIS’S OPINION The largest player in its industry. Currently in the process of a major share buy-back program, raising EPS and share price. Company is highly leveraged with a debt-to-equity ratio of 3.84 and a debt ratio of 0.79 compared to Henry Schein, Inc. with 0.67 and 0.40, respectively. Despite high debt, there is little risk of bankruptcy with a z- score of 4.84. Share price has a steady year-to-year growth of 20% in 2011 & 9.55% in 2012 in addition to a steady dividend.
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MCKESSON CORP. FINAL ANALYSIS’S OPINION Recommendation: Strong Buy : McKesson’s dominant market share. Anticipate growth in revenues, EPS, and share price. Should have an improved revenue mix comprised of higher- margin generic drugs. Major Risks : Possible loss of major accounts. Slowing trend in pharmaceutical growth. Unfavorable regulatory changes.
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