McCormick & Company Incorporated (MKC)

To analyze McCormick & Company Incorporated's days of sales outstanding (DSO) over the stated period:

1. DSO decreased from 34.44 days as of November 30, 2020, to 31.75 days as of November 30, 2021. This reduction indicates an improvement in the company's ability to collect its accounts receivable more efficiently in the given period.

2. The trend continued to improve in the subsequent years as DSO further declined to 32.97 days as of November 30, 2022, and then to 32.19 days as of November 30, 2023. This suggests that McCormick & Company managed its receivables effectively, potentially through more stringent credit policies or more proactive collections practices.

3. As of November 30, 2024, the DSO decreased to 31.89 days, indicating the company's sustained focus on managing its receivables efficiently. A lower DSO generally signifies that McCormick & Company is converting its accounts receivable into cash more promptly, which can enhance liquidity and overall financial health.

4. Overall, the decreasing trend in DSO over the specified period reflects positively on McCormick & Company's credit and collection management practices. It signifies the company's ability to efficiently convert its credit sales into cash, potentially reducing the risk of bad debts and improving working capital management.

This analysis suggests that McCormick & Company has been effective in managing its accounts receivable turnover, which is a critical aspect of its working capital management and overall financial performance.