Essay Example on McKesson CEO Change: Minimal Leadership Changes in Last Decade

Introduction

McKesson Corporation offers pharmaceutical supplies, medicines, and information and care management products and services for the healthcare industry. Brian Tyler became the new CEO of McKesson Corporation and assumed the role of an independent chair of McKesson's Board of Directors in 2019. He Succeeded John Hammergren, who had served as the corporation's top executive since 1999 CITATION McK19 \l 1033 (McKesson, 2019). The firm has had minimal leadership changes in the last 5-10 years. For instance, although Hammergren was succeeded, he remains a significant figure as a Board chair for Change Healthcare and be part of the McKesson advisory. Edward Mueller also became independent chair of the company's Board of Directors since 2008 and has chaired several top executive offices.

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Currently, the company is ranked 6th on FORTUNE 500 and a global leader in healthcare supply chain management solutions, medicine, specialty care, and community oncology, healthcare information technology, and retail pharmacy. The company has a very positive corporate and public image with some institutions such as the healthcare wholesaler category by FORTUNE naming the company as the "Most Admired Company," Human Rights Campaign Foundation as the "Best Place to Work" and Military Friendly as a top military-friendly company CITATION McK19 \l 1033 (McKesson, 2019).

Investment Summary

McKesson Corp.'s revenues increased from 2014 to 2015 and from 2015 to 2016. Similarly, the operating cost has also been on a steady increase as well as the income from the continuing operations before income taxes. The figure below shows that the operating expenses have remained below the bar for all the three years -5,942, -8,443, and -7,871, million dollars consecutively. Table 1 in the appendices provides more details. The company assets have been on a steady increase with a cash equivalent increasing significantly in 2014 and 2015, and a sharp decrease in 2016. The company's financial performance is very stable and an upward trend. The financial statements indicate a slight increase of 5 million increase in gross profits from 2015 to 2016, but a significant improvement before 2015 and after 2017. However, the company's stock performance has been on a decline since 2017 with considerable contributions from the company's competitors. Figure 2 in the appendices illustrates the trend.

The company's long-term debt includes both U.S. dollar and foreign currency-denominated borrowings. As of FY-2018, $7,694 million and $7,880 million of total debt were outstanding, with $1,126 million and $1,129 million included under the caption "Current portion of long-term debt."

Conclusion

In summary, investigating in McKesson Corp.'s would be the best idea, especially because of the inconsistency in stock performance, profits, and the increased liabilities and operational cost.

References

McKesson. (2019, Apr 01). Brian Tyler Becomes McKesson's New CEO. https://www.mckesson.com/about-mckesson/newsroom/press-releases/2019/brian-tyler-new-mckesson-ceo/#:~:text=IRVING%2C%20TEXAS%20April%201%2C%202019,company%27s%20top%20executive%20since%201999.&text=He%20also%20joins%20the%20company%27s%20Board%20of%20Dire

Links

https://www.sec.gov/Archives/edgar/data/927653/000092765319000009/mck_10kx3312019.htm

https://s24.q4cdn.com/128197368/files/doc_financials/2019/q2/McKesson_FY19Q2_Form_10-Q_Final.pdf

https://www.stock-analysis-on.net/NYSE/Company/McKesson-Corp/Financial-Statement/Statement-of-Cash-Flows

https://www.marketwatch.com/investing/stock/mck/financials/cash-flow

https://www.mckesson.comhttp://www.annualreports.com/HostedData/AnnualReportArchive/m/NYSE_MCK_2017.pdf

http://www.annualreports.com/HostedData/AnnualReportArchive/m/NYSE_MCK_2018.pdf