McCormick & Company Incorporated (MKC)
Payables 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 |
| Payables | US$ in thousands | 1,238,100 | 1,119,300 | 1,171,000 | 1,064,200 | 1,032,300 |
| Payables turnover | 3.34 | 3.72 | 3.48 | 3.59 | 3.20 |
November 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,132,700K ÷ $1,238,100K
= 3.34
The payables turnover ratio for McCormick & Company Incorporated has shown a consistent trend over the past five years.
In November 30, 2020, the payables turnover stood at 3.20, indicating that the company's payables were being converted into cash 3.20 times during that fiscal year.
There was a noticeable improvement in the ratio by November 30, 2021, reaching 3.59, suggesting that the company was managing its payables more efficiently and converting them into cash at a faster rate.
By November 30, 2022, the payables turnover slightly decreased to 3.48, but it remained at a relatively stable level compared to the previous year.
The ratio then increased to 3.72 by November 30, 2023, indicating an improvement in the management of payables turnover and showing that the company was becoming more effective in utilizing its payables.
However, by November 30, 2024, the payables turnover decreased to 3.34, suggesting a slight decline in the efficiency of converting payables into cash compared to the previous year.
Overall, the payables turnover ratio for McCormick & Company Incorporated demonstrates a consistent effort to efficiently manage its payables and convert them into cash, with fluctuations in performance over the years.