McCormick & Company Incorporated (MKC)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 5,347,400 | 5,330,500 | 5,319,500 |
| Receivables | US$ in thousands | 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 | 502,900 | 494,600 | 429,000 |
| Receivables turnover | 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 | 10.63 | 10.78 | 12.40 |
February 29, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,699,400K ÷ $567,500K
= 11.81
The receivables turnover ratio for McCormick & Company Incorporated has been relatively consistent over the periods presented, ranging from a low of 10.58 to a high of 13.00. This ratio measures how efficiently the company is collecting its accounts receivable during a specific time period.
A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which is a positive sign of effective management of credit and collections. Conversely, a lower ratio may suggest that the company is struggling to collect its receivables in a timely manner.
Overall, with the receivables turnover ratio averaging around 11 to 12 over the periods analyzed, it appears that McCormick & Company has been effectively managing its accounts receivable and collecting payments efficiently. This consistency in the ratio suggests that the company has maintained a steady approach to credit management and collection practices.