McCormick & Company Incorporated (MKC)
Total asset 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 |
| Total assets | US$ in thousands | 13,070,300 | 13,204,900 | 12,987,600 | 12,890,100 | 12,862,300 | 12,990,100 | 12,908,200 | 13,205,400 | 13,124,900 | 12,941,000 | 12,957,900 | 12,940,800 | 12,905,800 | 12,884,400 | 12,810,500 | 12,685,100 | 12,089,700 | 10,860,700 | 10,576,100 | 10,491,700 |
| Total asset turnover | 0.51 | 0.51 | 0.51 | 0.52 | 0.52 | 0.51 | 0.50 | 0.48 | 0.48 | 0.49 | 0.49 | 0.49 | 0.49 | 0.48 | 0.47 | 0.46 | 0.46 | 0.51 | 0.51 | 0.51 |
November 30, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,723,700K ÷ $13,070,300K
= 0.51
Total asset turnover is a financial ratio that measures a company's ability to generate revenue relative to its total assets. In the case of McCormick & Company Incorporated, the trend in total asset turnover over the past several quarters has been relatively stable, hovering around 0.51 in the earlier periods and gradually increasing to 0.52 by November 30, 2023. This indicates that the company is effectively utilizing its assets to generate sales.
However, from November 30, 2023, the total asset turnover ratio started to decline slightly, reaching 0.51 by August 31, 2024. This downtrend may suggest a potential decrease in the company's efficiency in utilizing its assets to generate revenue. Despite the recent slight decline, the total asset turnover ratio remains within a relatively narrow range, indicating that McCormick & Company is maintaining a consistent level of asset efficiency in generating sales.
Overall, while the company's total asset turnover ratio has shown some fluctuations over the quarters, it has generally remained stable, reflecting McCormick & Company's ability to efficiently utilize its assets to support its revenue generation activities.