Conduct a financial analysis of the company. Provide at least five important measures of the company’s financial well-being

For each of these measures, explain:

a. In layman’s terms what the financial measure means and why it is an important measure for determining your chosen company’s prospects for successful growth

b. What the value of this figure says about the financial well-being of your chosen company

c. How the value of that measure compares to at least one of the following

i. The industry average

ii. At least one of your company’s competitors or

iii. A similar or related company

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenues	$ 60,808	$ 57,616	$ 116,487	$ 113,344
Cost of sales	(57,808)	(54,749)	(110,787)	(107,690)
Gross profit	3,000	2,867	5,700	5,654
Operating expenses	(2,237)	(2,196)	(4,203)	(4,326)
Goodwill impairment charges	(69)	0	(69)	0
Restructuring, impairment, and related charges	(60)	(45)	(116)	(68)
Total operating expenses	(2,366)	(2,241)	(4,388)	(4,394)
Operating income	634	626	1,312	1,260
Other income (expense), net	71	(78)	98	(41)
Equity earnings and charges from investment in Change Healthcare Joint Venture	0	(1,454)	0	(1,450)
Interest expense	(50)	(64)	(110)	(120)
Income (loss) from continuing operations before income taxes	655	(970)	1,300	(351)
Income tax benefit (expense)	(28)	294	(178)	158
Income (loss) from continuing operations	627	(676)	1,122	(193)
Loss from discontinued operations, net of tax	0	(1)	(1)	(7)
Net income (loss)	627	(677)	1,121	(200)
Net income attributable to noncontrolling interests	(50)	(53)	(100)	(107)
Net income (loss) attributable to McKesson Corporation	$ 577	$ (730)	$ 1,021	$ (307)
Diluted
Continuing operations (in dollars per share)	$ 3.54	$ (3.99)	$ 6.26	$ (1.62)
Discontinued operations (in dollars per share)	0	0	0	(0.03)
Total (in dollars per share)	3.54	(3.99)	6.26	(1.65)
Basic
Continuing operations (in dollars per share)	3.56	(3.99)	6.31	(1.62)
Discontinued operations (in dollars per share)	0	0	(0.01)	(0.03)
Total (in dollars per share)	$ 3.56	$ (3.99)	$ 6.30	$ (1.65)
Weighted-average common shares outstanding
Diluted (in shares)	163	183	163	185
Basic (in shares)	162	183	162	185

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2020	Mar. 31, 2020
Current assets
Cash and cash equivalents	$ 3,091	$ 4,015
Receivables, net	19,285	19,950
Inventories, net	18,435	16,734
Assets held for sale	833	906
Prepaid expenses and other	701	617
Total current assets	42,345	42,222
Property, plant, and equipment, net	2,471	2,365
Operating lease right-of-use assets	1,895	1,886
Goodwill	9,414	9,360
Intangible assets, net	3,030	3,156
Other non-current assets	2,403	2,258
Total assets	61,558	61,247
Current liabilities
Drafts and accounts payable	36,255	37,195
Current portion of long-term debt	1,760	1,052
Current portion of operating lease liabilities	367	354
Liabilities held for sale	537	683
Other accrued liabilities	3,805	3,340
Total current liabilities	42,724	42,624
Long-term debt	5,848	6,335
Long-term deferred tax liabilities	2,293	2,255
Long-term operating lease liabilities	1,669	1,660
Other non-current liabilities	1,669	1,662
Redeemable noncontrolling interests	1,265	1,402
McKesson Corporation stockholders’ equity
Preferred stock, $0.01 par value, 100 shares authorized, no shares issued or outstanding	0	0
Common stock, $0.01 par value, 800 shares authorized, and 273 and 272 shares issued at September 30, 2020, and March 31, 2020, respectively	2	2
Additional paid-in capital	6,780	6,663
Retained earnings	13,890	13,022
Accumulated other comprehensive loss	(1,597)	(1,703)
Treasury shares, at cost, 112 and 110 shares at September 30, 2020, and March 31, 2020, respectively	(13,185)	(12,892)
Total McKesson Corporation stockholders’ equity	5,890	5,092
Noncontrolling interests	200	217
Total equity	6,090	5,309
Total liabilities, redeemable noncontrolling interests, and equity	$ 61,558	$ 61,247

Answer rating: 100% (QA)

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