McCormick & Company Incorporated (MKC)
Inventory turnover
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,160,500 | 4,159,700 | 4,179,500 | 4,146,500 | 4,116,600 | 4,076,000 | 4,032,100 | 3,953,000 | 3,881,300 | 3,823,300 | 3,693,100 | 3,583,300 | 3,462,800 | 3,300,900 | 3,258,500 | 3,207,800 | 3,179,600 | 3,202,100 | 3,210,200 | 3,216,600 |
| Inventory | US$ in thousands | 1,129,600 | 1,126,500 | 1,225,500 | 1,276,200 | 1,344,600 | 1,340,100 | 1,379,500 | 1,344,600 | 1,244,200 | 1,182,300 | 1,202,400 | 1,147,800 | 1,073,400 | 1,032,600 | 942,100 | 831,300 | 835,600 | 801,200 | 846,900 | 816,500 |
| Inventory turnover | 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 | 4.00 | 3.79 | 3.94 |
February 29, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,160,500K ÷ $1,129,600K
= 3.68
The inventory turnover ratio for McCormick & Company Incorporated has shown some fluctuations over the past four years, ranging from 2.92 to 4.00. The ratio indicates how efficiently the company manages its inventory by revealing the number of times the inventory is sold and replaced within a specific period.
Overall, the company's inventory turnover has generally been consistent, with an average ratio of approximately 3.34 over the past 20 reported periods. This suggests that, on average, the company goes through its inventory about 3.34 times a year. A higher inventory turnover ratio typically indicates that the company is effectively managing its inventory levels, which can lead to lower carrying costs and potential obsolescence risks.
Despite some fluctuations, the general trend shows a level of stability in McCormick & Company's inventory turnover performance. It would be beneficial for the company to continue monitoring and analyzing its inventory turnover to ensure optimal inventory management practices and operational efficiency.