McCormick & Company Incorporated (MKC)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 3.34 | 3.35 | 3.42 | 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 | |
| Number of days of payables | days | 109.35 | 109.08 | 106.69 | 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 |
November 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.34
= 109.35
The number of days of payables for McCormick & Company Incorporated has fluctuated over the years based on the data provided. The company's average number of days of payables ranged from around 90 days to as high as 114 days.
In general, an increasing number of days of payables could indicate that McCormick is taking longer to pay its suppliers, which could be beneficial for managing cash flow and working capital. However, it may also suggest that the company is facing challenges in its operations or liquidity position, as it is holding onto its payables for a longer period.
On the other hand, a decreasing number of days of payables may indicate that McCormick is being more efficient in managing its payables, potentially improving relationships with suppliers and taking advantage of possible early payment discounts. However, it could also suggest a strain on liquidity if payments are being made more quickly than before.
It is essential for investors and stakeholders to monitor changes in the number of days of payables over time to assess McCormick's financial health, operational efficiency, and cash management practices. Additionally, comparative analysis with industry peers and historical trends could provide further insights into the company's payment practices and financial performance.