This is a one-credit course designed to introduce/reinforce knowledge of financial statement analysis. In the online lecture portion of the course. I will demonstrate a ratio analysis of Walgreens Drug Store. Your assignment will is to identify a publicly traded company of your choosing and conduct a ratio analysis of said company. You will submit a written report of your analysis in the drop-box provided.
Ive chosen McKesson Corporation (MCK) - I have access to te S&P Capital IQ and can provide all financials that will be needed to conduct the analysis.
Resources:sec.gov An excellent source of financial statements for your firm.https://flnance.yahoo.com/ A good source for company news and current events. This site will also provide you with historical stock price data for computing historical P/E ratios.S&P Capital IQ An extensive database of company and industry news and financial information. You should use this resource extensively in researching and writing your paper.
Snapshot Input TickerNYSE:MCKCurrencyUSD1Revenue4Consensus90.12857ConsolidatedCONCONmm/dd/yyyy EBITDAUser InputUnconsolidatedUNC Select LanguageChoose EstimatesDate6/18/20EBIT11 EPS Valuation GraphEstimate Consolidation 99899910002000496500 FINANCIAL SNAPSHOT TEARSHEET McKesson Corporation (NYSE:MCK)McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates through three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The U.S. Pharmaceutical and Specialty Solutions segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products. This segment provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and solutions for life sciences companies, including offering multiple distribution channels and clinical trial access to specific patient populations through its network of oncology physicians. The segment also sells financial, operational and clinical solutions to pharmacies; and offers consulting, outsourcing, and other services. The European Pharmaceutical Solutions segment provides distribution and services to wholesale, institutional, and retail customers in 13 European countries. The Medical-Surgical Solutions segment distributes medical-surgical supplies and provides logistics and other services to healthcare providers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas. BUSINESS DESCRIPTION230 McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates through three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and1 Medical-Surgical Solutions. The U.S. Pharmaceutical and Specialty Solutions segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products. This segment2 provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and solutions for life sciences companies, including offering multiple distribution3 channels and clinical trial access to specific patient populations through its network of oncology physicians. The segment also sells financial, operational and clinical solutions to pharmacies; and offers consulting, outsourcing, and4 other services. The European Pharmaceutical Solutions segment provides distribution and services to wholesale, institutional, and retail customers in 13 European countries. The Medical-Surgical Solutions segment distributes5 medical-surgical supplies and provides logistics and other services to healthcare providers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.6 07 08 09 010 11 VALUATION AND MARKET DATAPRICE/VOLUME GRAPH (in millions, except per share data) ValuationMarket Data Latest Fiscal Year3/31/20Dividend Yield1.1% LTM as of3/31/205 Year Beta0.84 52 Week High (02/21/2020)172.18Float161.3 52 Week Low (03/16/2020)112.60Float %99.7% Daily Volume0.3Short Interest as a % of S/O1.7% Current Price (06/18/2020)152.90Shares Sold Short2.7 % of 52-Week High88.8%Days Cover Short1.3 % of 52-Week Low135.8%Average Daily Trading Volume % of 52-Week Range67.6%Last Week1.26/11/20 Total Basic Common Shares161.9Last Month1.65/18/20 Market Capitalization24,747.4Last 3 Months2.03/18/20 Plus: Total Debt9,420.0Last 6 Months3.412/18/19 Plus: Preferred Stock0.0Last Year2.56/18/19 Plus: Minority Interest1,619.0Relative Stock Price Performance Less: Cash and ST Investments(4,015.0)NYSE:MCK YTD10.5%12/31/19 Enterprise Value31,771.4S&P 500 YTD(3.7%) CAPITAL STRUCTURE*LEVERAGE MULTIPLES Commercial Paper0.0Unamortized Premium0.0EBITDA/Interest Exp.17.4xSr. Sub. Debt/EBITDA*0.0x Revolving Credit0.0Unamortized Discount0.0(EBITDA-Capex)/Interest Exp.16.0xSr. Sub. Debt/(EBITDA-CAPEX)*0.0x Term Loans0.0Adjustments19.0 Snr. Bonds and Notes7,213.0Total Debt9,420.0Total Debt/EBITDA2.2xSub. Debt/EBITDA*0.0x Sub Bonds and Notes0.0Net Debt/EBITDA1.2xSub. Debt/(EBITDA-CAPEX)*0.0x Trust Preferred0.0Undrawn Revolver4,012.0 Leases2,180.0Undrawn Commercial Paper4,000.0Senior Debt/EBITDA*2.2xJr. Sub Debt/EBITDA*0.0x Other8.0Undrawn Term Loans0.0Senior Debt/(EBITDA - CAPEX)*2.4xJr. Sub Debt/(EBITDA-CAPEX)*0.0x Total Principal Due9,401.0Other Available Credit0.0 Total Undrawn Credit8,012.0Total Sub. Debt/ EBITDA*0.0x Total Sub. Debt/(EBITDA - CAPEX)*0.0x VALUATION MULTIPLESVALUATION CHARTS (in millions)Fiscal Year Ending,LTMFiscal Year Ending, 3/31/183/31/193/31/203/31/202021E2022E Total Revenue208,357.0214,319.0231,051.0231,051.0235,703.9247,386.7Input Estimates TEV/Total Revenue0.18x0.15x0.16x0.14x0.14x0.13x2021E2022E EBITDA3,858.04,208.03,763.03,763.03,869.04,229.7Revenue TEV/EBITDA10.5x7.8x12.3x9.8x8.3x7.6xEBITDA EBIT2,907.03,259.02,841.02,841.03,383.13,691.0EBIT TEV/EBIT14.2x10.3x25.8x18.1x9.5x8.7xEPS Diluted EPS0.300.174.994.9914.3716.97 P/E6.2xNMNM31.0x10.8x9.1x Fiscal Year Ending,LTMQuarter Ended,, 3/31/183/31/193/31/203/31/203/31/193/31/20 Growth Over Prior Year Total Revenue4.9%2.9%7.8%7.8%1.6%11.6% EBITDA(12.2%)9.1%(10.6%)(10.6%)11.3%1.2% EBIT(16.5%)12.1%(12.8%)(12.8%)18.0%2.0% Net Income(98.7%)(49.3%)2547.1%2547.1%NMNM Diluted EPS before Extra(98.7%)(43.5%)2863.8%2863.8%NMNM CAGR (5 Year) Total Revenue11.3%9.3%5.2%5.2%0.0%0.0% EBITDA6.1%5.1%(1.9%)(1.9%)0.0%0.0% EBIT4.4%4.7%(1.8%)(1.8%)0.0%0.0% Net Income(45.1%)(51.5%)(9.4%)(9.4%)0.0%0.0% Diluted EPS before Extra(44.6%)(51.2%)(7.9%)(7.9%)0.0%0.0% * Denotes financial data as of latest fiscal year. Source: S&P Capital IQ Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied.Copyright © 2019 S&P Global Market Intelligence LLC (and its affiliates as applicable) – All rights reserved. This model and/or any data in it are provided subject to the written agreement of S&P Global Market Intelligence LLC governing the subscription service to which this model is applied. FINANCIAL SNAPSHOT TEARSHEET (cont.) McKesson Corporation (NYSE:MCK) SUMMARY BALANCE SHEETSUMMARY INCOME STATEMENT (in millions)Fiscal Year Ending,LTMQuarter Ended,,(in millions)Fiscal Year Ending,LTMQuarter Ended,, 3/31/183/31/193/31/203/31/203/31/193/31/203/31/183/31/193/31/203/31/203/31/193/31/20 Total Cash & ST Investments2,672.02,981.04,015.04,015.02,981.04,015.0Total Revenues208,357.0214,319.0231,051.0231,051.052,429.058,535.0 Total Receivables17,711.018,246.019,950.019,950.018,246.019,950.0Cost Of Revenues197,173.0202,565.0219,028.0219,028.049,228.055,199.0 Inventory16,310.016,709.016,734.016,734.016,709.016,734.0Gross Profit11,184.011,754.012,023.012,023.03,201.03,336.0 Other Current Assets443.0529.01,523.01,523.0529.01,523.0Selling General & Admin Exp.8,138.08,403.09,086.09,086.02,862.02,929.0 Total Current Assets37,136.038,465.042,222.042,222.038,465.042,222.0R & D Exp.125.071.096.096.071.096.0 Net Property, Plant & Equipment2,464.02,548.04,251.04,251.02,548.04,251.0Other Operating Expenses14.021.00.00.0(573.0)(547.0) Long-term Investments3,728.03,513.00.00.03,513.00.0Operating Income2