Provision for Credit Losses
McKesson Provision for Credit Losses increased by 192.9% to $196.00M in Q2 2025 compared to the prior quarter. Year-over-year, this metric grew by 1206.7%, from $15.00M to $196.00M. Over 2 years (FY 2022 to FY 2025), Provision for Credit Losses shows a downward trend with a 111.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests management expects higher default rates or a deteriorating credit environment, while a decrease suggests improved borrower quality.
Detailed definition
This represents the non-cash expense set aside by a financial institution to cover potential losses from loans or credit...
Peer comparison
Common in banking and credit card issuers; peers adjust this based on macroeconomic forecasts and portfolio seasoning.
provision_for_credit_losses_cfHistorical Data
| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q3 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $7.25M | $7.25M | $7.25M | $7.25M | $537.00M | $6.00M | -$175.00M | $25.00M | $963.00M | $15.00M | $217.00M | -$151.00M | -$211.00M | $196.00M |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | >999% | -98.9% | <-999% | +114.3% | >999% | -98.4% | >999% | -169.6% | -39.7% | +192.9% |
| YoY Change | — | — | — | — | >999% | — | — | -95.3% | — | +150.0% | +224.0% | -704.0% | -121.9% | >999% |
Business Segments
| Segment | Q1 '24 | Q2 '24 | Q4 '24 | Q2 '25 | Q4 '25 | Q1 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|
| North American Pharmaceutical | $181.25M | $181.25M | $181.25M | -$203.00M | — | — | -$239.00M |
| U.S. Pharmaceutical | — | — | — | — | -$409.00M | $189.00M | — |
| Total | $6.00M | -$175.00M | $963.00M | $217.00M | -$211.00M | $196.00M | — |
U.S. Pharmaceutical was previously reported and has since been discontinued or reclassified. Only currently active segments are shown in the chart.
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is McKesson's provision for credit losses?
- McKesson (MCK) reported provision for credit losses of $196.00M in Q2 2025.
- How has McKesson's provision for credit losses changed year-over-year?
- McKesson's provision for credit losses increased by 1206.7% year-over-year, from $15.00M to $196.00M.
- What is the long-term trend for McKesson's provision for credit losses?
- Over 2 years (2022 to 2025), McKesson's provision for credit losses has grown at a 111.7% compound annual growth rate (CAGR), from $29.00M to -$130.00M.
- What does provision for credit losses mean?
- The amount of money a lender sets aside to cover expected losses from unpaid debts.