McCormick & Company Incorporated (MKC)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,723,700 | 6,678,500 | 6,683,400 | 6,699,400 | 6,662,200 | 6,605,100 | 6,516,000 | 6,393,600 | 6,350,500 | 6,385,100 | 6,338,900 | 6,358,800 | 6,317,900 | 6,145,500 | 6,026,400 | 5,870,800 | 5,601,300 | 5,528,200 | 5,427,100 | 5,327,900 |
| Receivables | US$ in thousands | 587,400 | 660,900 | 598,500 | 567,500 | 587,500 | 624,500 | 557,200 | 571,000 | 573,700 | 565,800 | 493,100 | 516,700 | 549,500 | 541,000 | 500,400 | 515,900 | 528,500 | 496,500 | 494,300 | 409,900 |
| Receivables turnover | 11.45 | 10.11 | 11.17 | 11.81 | 11.34 | 10.58 | 11.69 | 11.20 | 11.07 | 11.29 | 12.86 | 12.31 | 11.50 | 11.36 | 12.04 | 11.38 | 10.60 | 11.13 | 10.98 | 13.00 |
November 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,723,700K ÷ $587,400K
= 11.45
The receivables turnover ratio for McCormick & Company Incorporated fluctuated over the period analyzed. The ratio indicates how efficiently the company is managing its receivables by measuring how many times a year the company collects its average accounts receivable balance.
From February 29, 2020, to May 31, 2022, the receivables turnover ratio generally increased from 13.00 to 12.86, suggesting that the company was able to collect its outstanding receivables more quickly during this period. This may indicate effective credit management practices or a stronger focus on collecting receivables promptly.
However, from August 31, 2022, the ratio started to decline, reaching its lowest point of 10.11 on August 31, 2024. A decreasing receivables turnover ratio could signal difficulties in collecting receivables promptly or potential issues with the credit quality of customers.
Overall, while the fluctuating trend in the receivables turnover ratio over the period indicates changes in the company's ability to collect receivables efficiently, a downward trend in the ratio may require closer attention to the company's credit and collections processes to ensure timely receipt of outstanding payments.