Mckesson Corporation (MCK) has reported 732.48 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $3,588 million, or $16.76 a share in the quarter, compared with $431 million, or $1.88 a share for the same period last year.     

Revenue during the quarter grew 4.36 percent to $48,713 million from $46,678 million in the previous year period. Gross margin for the quarter contracted 37 basis points over the previous year period to 5.74 percent. Total expenses were 90.30 percent of quarterly revenues, down from 98.41 percent for the same period last year. This has led to an improvement of 812 basis points in operating margin to 9.70 percent.

Operating income for the quarter was $4,726 million, compared with $740 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1,150 million compared to $1,063 million in the prior year period. At the same time, adjusted operating margin improved 8 basis points in the quarter to 2.36 percent from 2.28 percent in the last year period.

"As we exit a challenging fiscal year, I am encouraged by our strong fourth-quarter results," said John H. Hammergren, chairman and chief executive officer. "Our Fiscal 2017 was impacted by both company-specific and industry pressures. However, due to the actions we have taken, I believe we have positioned our businesses well to address evolving market dynamics and to capitalize on future growth opportunities."

For financial year 2018, the company projects diluted earnings per share to be in the range of $7.10 to $8.80, the company projects diluted earnings per share to be in the range of $11.75 to $12.45 on adjusted basis.

The company has spent $3,796 million cash to meet investing activities during the year as against cash outgo of $1,557 million in the last year.

The company has spent $2,069 million cash to carry out financing activities during the year as against cash outgo of $3,453 million in the last year period.

Cash and cash equivalents stood at $2,783 million as on Mar. 31, 2017, down 31.25 percent or $1,265 million from $4,048 million on Mar. 31, 2016.

Working capital drops significantly
Mckesson Corporation has witnessed a decline in the working capital over the last year. It stood at $1,336 million as at Mar. 31, 2017, down 60.31 percent or $2,030 million from $3,366 million on Mar. 31, 2016. Current ratio was at 1.04 as on Mar. 31, 2017, down from 1.10 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 4 days for the last year period. Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 15 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 30 days for the quarter, when compared with the previous year period.