McCormick & Company Incorporated (MKC)
Total asset 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 |
| Total assets | US$ in thousands | 13,070,300 | 12,862,300 | 13,124,900 | 12,905,800 | 12,089,700 |
| Total asset turnover | 0.51 | 0.52 | 0.48 | 0.49 | 0.46 |
November 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,723,700K ÷ $13,070,300K
= 0.51
The total asset turnover ratio for McCormick & Company Incorporated has been relatively stable over the past five years, ranging from 0.46 in November 2020 to 0.51 in November 2024. This ratio indicates the company's ability to generate sales revenue relative to its total assets.
A total asset turnover ratio of less than 1 suggests that the company is not efficiently utilizing its assets to generate sales. While McCormick's ratio has been below 1, it has shown a slight improvement over the years, indicating that the company is becoming more effective in generating sales from its assets.
However, it is essential to consider industry norms and compare the ratio with competitors to get a better understanding of McCormick's asset utilization efficiency. Overall, the trend in total asset turnover for McCormick & Company Incorporated shows a gradual improvement, which is a positive sign for the company's operational efficiency and effectiveness in utilizing its assets.