McCormick & Company Incorporated (MKC)
Receivables turnover
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,723,700 | 6,662,200 | 6,350,500 | 6,317,900 | 5,601,300 |
| Receivables | US$ in thousands | 587,400 | 587,500 | 573,700 | 549,500 | 528,500 |
| Receivables turnover | 11.45 | 11.34 | 11.07 | 11.50 | 10.60 |
November 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,723,700K ÷ $587,400K
= 11.45
To analyze McCormick & Company Incorporated's receivables turnover, we will look at the trend in the turnover ratio over the past five years:
- In November 2020, the receivables turnover ratio was 10.60, indicating that, on average, the company collected its outstanding receivables 10.60 times during the year.
- The ratio improved to 11.50 in November 2021, reflecting a faster turnover of receivables compared to the previous year.
- In November 2022, the receivables turnover ratio decreased slightly to 11.07, suggesting a small slowdown in the collection of receivables.
- However, there was a rebound in November 2023, with the turnover ratio increasing to 11.34, indicating an improvement in collecting outstanding receivables.
- The trend continued in November 2024, with the receivables turnover ratio reaching 11.45, showing further efficiency in collecting receivables.
Overall, the increasing trend in the receivables turnover ratio from 2020 to 2024 signifies that McCormick & Company Incorporated has been managing its receivables more effectively over the years, collecting outstanding payments at a faster pace. This could indicate improved credit policies, better collection procedures, or stronger customer relationships.