McCormick & Company Incorporated (MKC)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 3.67 | 3.72 | 3.80 | 3.77 | 3.66 | 3.48 | 3.53 | 3.51 | 3.62 | 3.59 | 3.61 | 3.44 | 3.58 | 3.20 | 3.61 | 3.74 | 4.03 | 3.78 | 4.10 | 4.55 | |
| Number of days of payables | days | 99.42 | 98.21 | 96.06 | 96.83 | 99.69 | 104.86 | 103.51 | 104.01 | 100.87 | 101.60 | 101.12 | 105.99 | 101.97 | 114.15 | 101.13 | 97.54 | 90.62 | 96.54 | 89.04 | 80.18 |
February 29, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.67
= 99.42
The number of days of payables for McCormick & Company Incorporated has shown some fluctuation over the past two years, ranging from a low of 80.18 days to a high of 114.15 days. In general, the trend indicates that the company takes on average around 100 days to pay off its payables. This suggests that McCormick & Company has an average payment term of 3.3 months, which is fairly consistent with industry norms.
It is important to consider the number of days of payables in conjunction with other financial ratios and performance metrics to assess the company's overall financial health and efficiency in managing its working capital. A higher number of days of payables could indicate that the company is effectively using trade credit to finance its operations, but it could also potentially signal liquidity issues or strained supplier relationships. Conversely, a lower number of days of payables may imply a more aggressive payment strategy, which could impact cash flow and relationships with suppliers.
Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of McCormick & Company's payables management practices and financial performance.