McCormick & Company Incorporated (MKC)
Total asset turnover
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,662,200 | 6,350,500 | 6,317,900 | 5,601,300 | 5,347,400 |
| Total assets | US$ in thousands | 12,862,300 | 13,124,900 | 12,905,800 | 12,089,700 | 10,362,100 |
| Total asset turnover | 0.52 | 0.48 | 0.49 | 0.46 | 0.52 |
November 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,662,200K ÷ $12,862,300K
= 0.52
The total asset turnover ratio for McCormick & Co., Inc. has fluctuated over the past five years, ranging from 0.46 to 0.52. This ratio indicates the company's ability to generate sales from its assets. A higher ratio typically suggests more effective asset utilization in generating sales. While there has been some variation, the ratio has generally been within a relatively narrow range, indicating a consistent level of efficiency in utilizing its total assets to generate revenue. However, it is important to further investigate the reasons behind the fluctuations to determine if there are any underlying operational or financial factors influencing this trend.