McCormick & Company Incorporated (MKC)
Inventory turnover
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,132,700 | 4,159,700 | 4,076,000 | 3,823,300 | 3,300,900 |
| Inventory | US$ in thousands | 1,239,900 | 1,126,500 | 1,340,100 | 1,182,300 | 1,032,600 |
| Inventory turnover | 3.33 | 3.69 | 3.04 | 3.23 | 3.20 |
November 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,132,700K ÷ $1,239,900K
= 3.33
To analyze McCormick & Company Incorporated's inventory turnover, we will evaluate the trend from November 30, 2020, to November 30, 2024.
- In November 2020, the inventory turnover ratio was 3.20. This indicates that the company's inventory turned over approximately 3.20 times during that year.
- By November 2021, the inventory turnover improved slightly to 3.23, showing a modest increase in efficiency in managing inventory.
- The ratio decreased in November 2022 to 3.04, suggesting that the company took slightly longer to sell its inventory compared to the previous year.
- The trend reversed in November 2023 with a significant increase in the inventory turnover to 3.69, indicating that the company was managing its inventory more effectively and selling it at a quicker pace.
- However, by November 2024, the inventory turnover ratio declined to 3.33, still higher than in 2022 but lower than the peak in 2023.
Overall, McCormick & Company's inventory turnover fluctuated over the years, with an initial improvement, a subsequent decline, and another notable increase before stabilizing at a level higher than in 2022. This suggests potential shifts in inventory management practices and sales strategies that impacted the efficiency of inventory turnover during the period analyzed.