MCKNEUTRAL

Gross Margin

4.2%

Updated 200h ago

Sector Performance

0th percentile

MCK

4.2%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

McKesson’s gross margin of 4.2% means that, after deducting the direct costs of producing its goods or services, the company retains only $0.042 of every sales dollar to cover operating expenses and profit — a very thin buffer.

This figure sits far below the sector median of 44.4%, placing McKesson in the 0th percentile among its peers, indicating it is the lowest-margin company in the group. No year-over-year or quarter-over-quarter changes are available, and there is no trend data over the last eight quarters, so there is no basis to assess whether the margin is improving or deteriorating. The combination of an extremely low absolute level and an absence of trend information creates a high risk impression: the margin offers minimal cushion against cost increases or pricing pressure, but without historical context it is impossible to judge if this is a stable, structural feature or a temporary weakness. This metric strongly contradicts the overall NEUTRAL verdict, because a gross margin at the very bottom of the sector typically signals a competitive disadvantage that warrants a more cautious or negative view.

Frequently Asked Questions

What does the Gross Margin tell investors about MCK?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are MCK's closest peers by Gross Margin?

The closest peers by Gross Margin include: COST (12.8%), WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.