McCormick & Company Incorporated (MKC)
Days of inventory on hand (DOH)
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.33 | 3.31 | 3.57 | 3.68 | 3.69 | 3.41 | 3.25 | 3.06 | 3.04 | 2.92 | 2.94 | 3.12 | 3.23 | 3.07 | 3.12 | 3.23 | 3.20 | 3.46 | 3.86 | 3.81 | |
| DOH | days | 109.51 | 110.40 | 102.10 | 99.10 | 98.85 | 107.02 | 112.34 | 119.22 | 120.00 | 124.88 | 124.15 | 117.01 | 112.87 | 118.84 | 116.92 | 113.14 | 114.18 | 105.53 | 94.59 | 95.92 |
November 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.33
= 109.51
The days of inventory on hand (DOH) of McCormick & Company Incorporated have fluctuated over the past few years. The data shows that as of November 30, 2024, the company had 109.51 days of inventory on hand, indicating a slight decrease compared to the previous quarter.
Analyzing further, we observe that the DOH metric has seen some variability within the range of 94.59 days to 124.88 days over the recent quarters. This indicates that there have been fluctuations in the company's inventory management efficiency during this period.
It is worth noting that a lower DOH value is generally preferred as it signifies that the company is selling its inventory more quickly, reducing holding costs and potential risks such as inventory obsolescence. Conversely, a higher DOH value may suggest excess inventory levels, potentially tying up capital that could have been utilized elsewhere.
Overall, monitoring the trend of McCormick & Company's DOH over time can provide insights into the company's inventory management practices and operational effectiveness.