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PRESENTED BY: MATTHEW PETRELLA MCKESSON CORP. FINANCIAL ANALYSIS.

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Presentation on theme: "PRESENTED BY: MATTHEW PETRELLA MCKESSON CORP. FINANCIAL ANALYSIS."— Presentation transcript:

1 PRESENTED BY: MATTHEW PETRELLA MCKESSON CORP. FINANCIAL ANALYSIS

2 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.

3 COMMON SIZE BALANCE SHEET ASSETS (ALL FIGURES IN MILLIONS)

4 COMMON SIZE BALANCE SHEET LIABILITIES & STOCKHOLDERS’ EQUITY (ALL FIGURES IN MILLIONS)

5 BALANCE SHEET — VERTICAL ANALYSIS ASSETS

6 BALANCE SHEET — VERTICAL ANALYSIS LIABILITIES & STOCKHOLDERS’ EQUITY

7 BALANCE SHEET — HORIZONTAL ANALYSIS ASSETS

8 BALANCE SHEET — HORIZONTAL ANALYSIS LIABILITIES & STOCKHOLDERS’ EQUITY

9 COMMON SIZE INCOME STATEMENT (ALL FIGURES IN MILLIONS)

10 INCOME STATEMENT VERTICAL ANALYSIS

11 INCOME STATEMENT HORIZONTAL ANALYSIS

12 PROFITABILITY ANALYSIS

13 LIQUIDITY ANALYSIS

14 DEBT ANALYSIS

15 INVESTOR ANALYSIS

16 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.

17 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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