McCormick & Company Incorporated (MKC)
Days of inventory on hand (DOH)
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.33 | 3.69 | 3.04 | 3.23 | 3.20 | |
| DOH | days | 109.51 | 98.85 | 120.00 | 112.87 | 114.18 |
November 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.33
= 109.51
To analyze McCormick & Company Incorporated's days of inventory on hand (DOH) over the past five years:
1. DOH was 114.18 days as of November 30, 2020, indicating that on average, it took the company approximately 114 days to convert its inventory into sales.
2. In the following year, as of November 30, 2021, the DOH decreased slightly to 112.87 days, suggesting a marginal improvement in inventory management efficiency.
3. By November 30, 2022, the DOH increased to 120.00 days, which could signal potential challenges in inventory turnover or inventory management issues.
4. However, in the subsequent year, the DOH declined significantly to 98.85 days as of November 30, 2023, indicating a notable improvement in the company's inventory management.
5. As of November 30, 2024, the DOH slightly rose to 109.51 days, possibly suggesting a moderate increase in the time it takes to move inventory, although still lower than the 2022 levels.
Overall, the trend in McCormick & Company Incorporated's DOH shows fluctuations over the five-year period, with improvements observed in some years and challenges in others. Monitoring this ratio can provide insights into the company's inventory management efficiency and operational performance.