Accounts Receivable, Credit Loss Expense (Reversal)
McKesson Accounts Receivable, Credit Loss Expense (Reversal) 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), Accounts Receivable, Credit Loss Expense (Reversal) 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 may signal deteriorating customer credit health or a more aggressive sales strategy targeting riskier clients.
Detailed definition
This represents the estimated expense for accounts receivable that the company believes will not be collected. It serves...
Peer comparison
Standard metric for any business extending credit terms to customers.
operating_provision_for_doubtful_accountsHistorical 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.
Accounts Receivable, Credit Loss Expense (Reversal) at Other Companies
Frequently Asked Questions
- What is McKesson's accounts receivable, credit loss expense (reversal)?
- McKesson (MCK) reported accounts receivable, credit loss expense (reversal) of $196.00M in Q2 2025.
- How has McKesson's accounts receivable, credit loss expense (reversal) changed year-over-year?
- McKesson's accounts receivable, credit loss expense (reversal) increased by 1206.7% year-over-year, from $15.00M to $196.00M.
- What is the long-term trend for McKesson's accounts receivable, credit loss expense (reversal)?
- Over 2 years (2022 to 2025), McKesson's accounts receivable, credit loss expense (reversal) has grown at a 111.7% compound annual growth rate (CAGR), from $29.00M to -$130.00M.
- What does accounts receivable, credit loss expense (reversal) mean?
- The estimated cost of customers failing to pay their invoices.