McCormick & Company Incorporated (MKC)
Days of inventory on hand (DOH)
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.69 | 3.04 | 3.23 | 3.20 | 4.00 | |
| DOH | days | 98.85 | 120.00 | 112.87 | 114.18 | 91.33 |
November 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.69
= 98.85
To analyze McCormick & Co., Inc.'s days of inventory on hand (DOH) over the past five years, we can observe a fluctuating trend.
As of November 30, 2023, the company's DOH stands at 98.85 days, representing a decrease from the previous year's 120.00 days. This suggests that the company has been able to manage its inventory more efficiently, potentially resulting in a smoother cash conversion cycle.
Comparing this year's DOH to the figures from 2021 and 2020, it is evident that the company has made progress in streamlining its inventory management, as the DOH has decreased from 112.87 days to 98.85 days. This trend indicates that McCormick & Co., Inc. has been successful in optimizing its inventory levels, which could lead to cost savings and improved cash flow.
In contrast, the DOH in 2019 was slightly lower at 91.33 days, indicating that the company had previously maintained a more efficient inventory turnover rate. However, the recent improvement reflects the company's efforts to enhance its working capital management.
Overall, the downward trend in DOH over the last two years signals an improvement in inventory management for McCormick & Co., Inc., potentially contributing to enhanced operational efficiency and financial performance.