McCormick & Company Incorporated (MKC)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 11.45 | 10.11 | 11.17 | 11.81 | 11.34 | 10.58 | 11.69 | 11.20 | 11.07 | 11.29 | 12.86 | 12.31 | 11.50 | 11.36 | 12.04 | 11.38 | 10.60 | 11.13 | 10.98 | 13.00 | |
| DSO | days | 31.89 | 36.12 | 32.69 | 30.92 | 32.19 | 34.51 | 31.21 | 32.60 | 32.97 | 32.34 | 28.39 | 29.66 | 31.75 | 32.13 | 30.31 | 32.07 | 34.44 | 32.78 | 33.24 | 28.08 |
November 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.45
= 31.89
The days of sales outstanding (DSO) for McCormick & Company Incorporated have shown fluctuations over the past few years. The DSO started at 28.08 days on February 29, 2020, which indicates the company took approximately a month to collect its accounts receivable. Over the next few periods, the DSO varied between 30 to 34 days, showing some inconsistencies in the company's collections efficiency.
In the recent periods, there seems to be a slight improvement in the DSO, with the metric decreasing to around 29 to 32 days. Specifically, on May 31, 2022, the DSO decreased to 28.39 days, representing a comparatively efficient collection process. However, by August 31, 2024, the DSO increased to 36.12 days, indicating a longer time taken by the company to collect its receivables.
Overall, the trend in DSO for McCormick & Company Incorporated shows some variability, with periods of improvement followed by slight deteriorations. It will be important for the company to monitor its DSO closely to ensure efficient management of its accounts receivable and optimize its cash flow management.