McKESSON CORPORATION (MCK) FY2026 Q3 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2025-10-01 to 2025-12-31

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McKESSON CORPORATION cash flow reconciliation, Oct 1, 2025 through Dec 31, 2025One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $1,232,000,000.00Net income → Operating adjustments reconciliation: $18,000,000.00Other → Operating adjustments reconciliation: $827,000,000.00Receivables → Operating adjustments reconciliation: $166,000,000.00Amortization → Operating adjustments reconciliation: $123,000,000.00Depreciation → Operating adjustments reconciliation: $65,000,000.00Taxes → Operating adjustments reconciliation: $63,000,000.00Deferred taxes → Operating adjustments reconciliation: $49,000,000.00Non-cash operating lease expense → Operating adjustments reconciliation: $44,000,000.00Other non-cash items → Operating adjustments reconciliation: $40,000,000.00Asset impairment charges → Operating adjustments reconciliation: $6,000,000.00Operating adjustments reconciliation → Inventories: $899,000,000.00Operating adjustments reconciliation → Drafts and accounts payable: $279,000,000.00Operating adjustments reconciliation → Provision for bad debts: $151,000,000.00Operating adjustments reconciliation → Operating lease liabilities: $50,000,000.00Operating adjustments reconciliation → Litigation liabilities: $12,000,000.00Operating adjustments reconciliation → Charges (credits) associated with last-in, first-out inventory method: $10,000,000.00Proceeds from sales of businesses and investments, net → investing reconciliation: $4,000,000.00investing reconciliation → Payments for property, plant, and equipment: $108,000,000.00investing reconciliation → Other: $75,000,000.00investing reconciliation → Capitalized software expenditures: $67,000,000.00investing reconciliation → Acquisitions, net of cash, cash equivalents, and restricted cash acquired: $23,000,000.00Net cash used in financing activities → financing reconciliation: $2,026,000,000.00Issuances → financing reconciliation: $15,000,000.00financing reconciliation → Repayments of long-term debt: $1,197,000,000.00financing reconciliation → Share repurchases: $680,000,000.00financing reconciliation → Dividends paid: $101,000,000.00financing reconciliation → Other: $63,000,000.00Net cash used in investing activities → investing reconciliation: $269,000,000.00Exchange-rate effect → Cash sources and uses: $7,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $4,109,000,000.00Net cash from operating activities → Cash sources and uses: $1,232,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $3,053,000,000.00Cash sources and uses → Net cash used in investing activities: $269,000,000.00Cash sources and uses → Net cash used in financing activities: $2,026,000,000.00Net income: $1,250,000,000.00Net income+$1.25 BDepreciation: $65,000,000.00Depreciation expense+$65.00 MAmortization: $123,000,000.00Amortization expense+$123.00 MAsset impairment charges: $6,000,000.00Other asset impairments+$6.00 MDeferred taxes: $49,000,000.00Deferred tax balances+$49.00 MCharges (credits) associated with last-in, first-out inventory method: -$10,000,000.00Inventory reserve provision−$10.00 MNon-cash operating lease expense: $44,000,000.00Non-cash lease expense+$44.00 MLoss (gain) from sales of businesses and investments: $0.00Provision for bad debts: -$151,000,000.00Credit loss provision−$151.00 MOther non-cash items: $40,000,000.00Other non-cash items+$40.00 MReceivables: $166,000,000.00Receivables, net+$166.00 MInventories: -$899,000,000.00Inventories−$899.00 MDrafts and accounts payable: -$279,000,000.00Accounts payable−$279.00 MOperating lease liabilities: -$50,000,000.00Operating lease liabilities−$50.00 MTaxes: $63,000,000.00Accrued taxes+$63.00 MLitigation liabilities: -$12,000,000.00Litigation liabilities−$12.00 MOther: $827,000,000.00Other working capital, net+$827.00 MNet cash from operating activities: $1,232,000,000.00Operating cash+$1.23 BOperating adjustments reconciliation: $1,401,000,000.00Proceeds from short-term borrowings: $0.00Repayments of short-term borrowings: $0.00Proceeds from issuances of long-term debt: $0.00Repayments of long-term debt: -$1,197,000,000.00Long-term debt repaid−$1.20 BIssuances: $15,000,000.00Employee stock plans & options+$15.00 MShare repurchases: -$680,000,000.00Common stock repurchases−$680.00 MDividends paid: -$101,000,000.00Common dividends paid−$101.00 MOther: -$63,000,000.00Other financing, net−$63.00 MNet cash used in financing activities: -$2,026,000,000.00. Cash required to fund net payments.Financing cash−$2.03 Bfinancing reconciliation: $2,041,000,000.00Payments for property, plant, and equipment: -$108,000,000.00PP&E purchases−$108.00 MCapitalized software expenditures: -$67,000,000.00Software purchases−$67.00 MProceeds from sales of businesses and investments, net: $4,000,000.00Business & affiliate sales+$4.00 MOther: -$75,000,000.00Other investing, net−$75.00 MAcquisitions, net of cash, cash equivalents, and restricted cash acquired: -$23,000,000.00Acquisitions, net of cash−$23.00 MNet cash used in investing activities: -$269,000,000.00. Cash required to fund net payments.Investing cash−$269.00 Minvesting reconciliation: $273,000,000.00Cash sources and uses: $5,348,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $4,109,000,000.00Beginning cash$4.11 BEnding cash: Cash, cash equivalents, and restricted cash: $3,053,000,000.00Ending cash$3.05 BExchange-rate effect: $7,000,000.00FX effect+$7.00 MCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$1.12 BOperating cash − cash spent on PP&ECash flow / Net income0.99×Operating cash flow ÷ net incomeNet cash change−$1.06 BEnding cash − beginning cash
Chart details

McKESSON CORPORATION cash flow reconciliation, Oct 1, 2025 through Dec 31, 2025

Cash flows for Oct 1, 2025 through Dec 31, 2025. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Sep 30, 2025. Ending cash: Dec 31, 2025. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Sep 30, 2025
4,109,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
1,232,000,000 US dollars. Net cash provided.
Net income
1,250,000,000 US dollars
Depreciation
65,000,000 US dollars
Amortization
123,000,000 US dollars
Asset impairment charges
6,000,000 US dollars
Deferred taxes
49,000,000 US dollars
Charges (credits) associated with last-in, first-out inventory method
negative 10,000,000 US dollars
Non-cash operating lease expense
44,000,000 US dollars
Loss (gain) from sales of businesses and investments
0 US dollars
Provision for bad debts
negative 151,000,000 US dollars
Other non-cash items
40,000,000 US dollars
Receivables
166,000,000 US dollars
Inventories
negative 899,000,000 US dollars
Drafts and accounts payable
negative 279,000,000 US dollars
Operating lease liabilities
negative 50,000,000 US dollars
Taxes
63,000,000 US dollars
Litigation liabilities
negative 12,000,000 US dollars
Other
827,000,000 US dollars
Investing activities
negative 269,000,000 US dollars. Net cash used.
Payments for property, plant, and equipment
negative 108,000,000 US dollars
Capitalized software expenditures
negative 67,000,000 US dollars
Proceeds from sales of businesses and investments, net
4,000,000 US dollars
Other
negative 75,000,000 US dollars
Acquisitions, net of cash, cash equivalents, and restricted cash acquired
negative 23,000,000 US dollars
Financing activities
negative 2,026,000,000 US dollars. Net cash used.
Proceeds from short-term borrowings
0 US dollars
Repayments of short-term borrowings
0 US dollars
Proceeds from issuances of long-term debt
0 US dollars
Repayments of long-term debt
negative 1,197,000,000 US dollars
Issuances
15,000,000 US dollars
Share repurchases
negative 680,000,000 US dollars
Dividends paid
negative 101,000,000 US dollars
Other
negative 63,000,000 US dollars
Operating adjustment reconciliation
1,401,000,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
2,041,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
273,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
7,000,000 US dollars
Ending cash on Dec 31, 2025
3,053,000,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
5,348,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 1,056,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
0.99×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
1,232,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
108,000,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
1,124,000,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income exceeds operating cash. The diagram allocates $1.23B of net income directly to operating cash and $18.00M to the adjustment junction, where it combines with other additions to reconcile deductions. This is an accounting presentation, not a tracing of cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 1,232,000,000 US dollars minus 108,000,000 US dollars equals 1,124,000,000 US dollars.
McKESSON CORPORATION (MCK) FY2026 Q3 Statement of Cash Flows Sankey chart
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