Filing Flows

Filing Flows › Companies › McKesson › Cash flow

McKesson cash flow, quarter by quarter

Latest: Q2 FY27 · from the cash-flow statements filed with the SEC

Free cash flow$3.0B in Q2 FY27 · $7.1B over twelve months

Operating cash flow$3.1B
Capital spending−$65.0M
Free cash flow+$3.0B
Cash / net income2.4×
Cash conversion cycle-8 days

Analysis

In Q2 FY27, McKesson generated $3.1B of operating cash flow and spent $65.0M on capital projects, leaving free cash flow of $3.0B. That is $691M more than in Q2 FY26 ($2.3B).

Over the twelve months to Sep 30, 2026, operating cash flow was $7.5B; the largest uses were buybacks ($6.8B), other investing ($468M), dividends ($400M); besides operations, cash came from net borrowing (+) / repaid (−) ($1.5B), other financing ($787M); the cash balance rose by $2.5B.

Operating cash flow was $3.1B against net income of $1.3B — 2.4× profit, cash ran ahead of reported earnings. The largest differences: payables +$4.0B, inventory −$2.0B, receivables −$476M.

Its cash conversion cycle was -8 days (receivables 25 + inventory 23 − payables 57): suppliers fund its working capital.

Free cash flow

McKesson: free cash flow by quarterMcKesson: free cash flow by quarter−$2.5BQ3 FY25$7.6BQ4 FY25−$1.1BQ1 FY26$2.3BQ2 FY26$1.1BQ3 FY26$3.3BQ4 FY26−$332MQ1 FY27$3.0BQ2 FY27
Operating cash flow less capital spending.
McKesson: operating cash flow against capital spendingMcKesson: operating cash flow against capital spendingOperating cash flowCapital spending−$2.4B$126MQ3 FY25$7.7B$169MQ4 FY25−$918M$189MQ1 FY26$2.4B$106MQ2 FY26$1.2B$108MQ3 FY26$3.4B$111MQ4 FY26−$220M$112MQ1 FY27$3.1B$65.0MQ2 FY27
Latest (Q2 FY27): Operating cash flow $3.1B, Capital spending $65.0M.

Capital allocation, year by year

McKesson: where the cash came from (up) and went (down), by fiscal yearMcKesson: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsBuybacksDividendsFY22: Operating cash flow $4.4BFY22: Net borrowing −$1.2BFY22: Shares issued $220MFY22: Asset sales $578MFY22: Capital spending −$535MFY22: Acquisitions −$6.0MFY22: Buybacks −$3.5BFY22: Dividends −$277M$5.2BFY22FY23: Operating cash flow $5.2BFY23: Net borrowing −$277MFY23: Shares issued $163MFY23: Asset sales $1.1BFY23: Capital spending −$558MFY23: Acquisitions −$867MFY23: Buybacks −$3.6BFY23: Dividends −$292M$6.4BFY23FY24: Operating cash flow $4.3BFY24: Net borrowing $656MFY24: Shares issued $116MFY24: Asset sales $47.0MFY24: Capital spending −$687MFY24: Acquisitions −$272MFY24: Buybacks −$3.0BFY24: Dividends −$314M$5.1BFY24FY25: Operating cash flow $6.1BFY25: Net borrowing −$21.0MFY25: Shares issued $101MFY25: Asset sales $179MFY25: Capital spending −$859MFY25: Acquisitions −$24.0MFY25: Buybacks −$3.1BFY25: Dividends −$345M$6.4BFY25FY26: Operating cash flow $6.2BFY26: Net borrowing $783MFY26: Shares issued $89.0MFY26: Asset sales $830MFY26: Capital spending −$436MFY26: Acquisitions −$3.4BFY26: Buybacks −$4.8BFY26: Dividends −$381M$7.9BFY26
Over these 5 years operating cash flow totalled $26.1B; the largest uses were buybacks ($18.1B) and acquisitions ($4.6B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$6.5B
Debt$9.2B
Net debt$2.7B
Due within a year$1.3B

McKesson funds itself: free cash flow was $7.1B over the last twelve months, and $6.5B of cash and investments stands against $9.2B of debt ($1.3B due within a year, 5.2× covered by cash).

McKesson: debt maturities by year (FY26)McKesson: debt maturities by year (FY26)$1.3BYear 1$390MYear 2$1.0BYear 3$723MYear 4$676MYear 5$2.4BAfter year 5
Principal due in each year as disclosed in the annual report, against $6.5B of cash and investments now.

Where the cash came from and went

McKesson: sources (+) and uses (−) of cash, Q2 FY27McKesson: sources (+) and uses (−) of cash, Q2 FY27Operating cash flow$3.1BCash drawn (+) / kept (−)−$1.4BBuybacks−$894MNet borrowing (+) / repaid (−)−$504MOther financing−$113MDividends−$96.0MOther investing−$85.0MCapital spending−$65.0MShares issued$33.0MAsset & business sales$20.0MExchange rates−$3.0M
McKesson: sources (+) and uses (−) of cash, TTM to Q2 FY27McKesson: sources (+) and uses (−) of cash, TTM to Q2 FY27Operating cash flow$7.5BBuybacks−$6.8BCash drawn (+) / kept (−)−$2.5BNet borrowing (+) / repaid (−)$1.5BOther financing$787MAsset & business sales$726MOther investing−$468MDividends−$400MCapital spending−$396MShares issued$95.0MAcquisitions−$50.0MExchange rates−$17.0M

From profit to cash

McKesson: net income to operating cash flow, Q2 FY27McKesson: net income to operating cash flow, Q2 FY27Net income$1.3BDepreciation & amortization$197MOther non-cash$69.0MReceivables−$476MInventory−$2.0BPayables$4.0BIncome taxes payable$60.0MOther operating capital$335MOperating cash flow$3.1B
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q2 FY27252357-8
Q1 FY27252355-8
Q4 FY26262559-8
Q3 FY26242455-6
Q2 FY26252455-6
Q1 FY26252354-6
Q4 FY25262454-5
Q3 FY25252451-3

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q2 FY27$3.1B−$65.0M—−$894M−$96.0M−$504M$33.0M−$1.4B$3.0B
Q1 FY27−$220M−$112M−$23.0M−$2.5B−$102M$3.2B$23.0M−$1.2B−$332M
Q4 FY26$3.4B−$111M−$4.0M−$2.7B−$101M−$8.0M$24.0M−$1.0B$3.3B
Q3 FY26$1.2B−$108M−$23.0M−$680M−$101M−$1.2B$15.0M$1.1B$1.1B
Q2 FY26$2.4B−$106M−$30.0M−$818M−$89.0M−$2.0M$28.0M−$1.4B$2.3B
Q1 FY26−$918M−$189M−$3.4B−$581M−$90.0M$2.0B$22.0M$3.3B−$1.1B
Q4 FY25$7.7B−$169M−$21.0M−$300M−$91.0M−$2.4B$28.0M−$4.7B$7.6B
Q3 FY25−$2.4B−$126M−$2.0M−$827M−$92.0M$2.4B$19.0M$1.2B−$2.5B

McKesson: income statement and cash flow

McKesson, Q2 FY27: revenue $111.0B (+8% year over year), operating margin 1.4%. The chart follows the revenue to costs, profit and cash.

McKesson: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.