McCormick & Company Incorporated (MKC)

Total asset 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
Total assets	US$ in thousands	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	10,362,100	10,366,000	10,236,700
Total asset turnover		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	0.52	0.51	0.52

February 29, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,699,400K ÷ $12,890,100K
= 0.52

The total asset turnover for McCormick & Company Incorporated has been relatively stable and ranged between 0.46 and 0.52 over the past seven quarters. This ratio indicates that, on average, the company generates around $0.50 to $0.52 in sales for every $1 of total assets it owns.

A total asset turnover ratio of 0.50 to 0.52 suggests that McCormick is efficiently utilizing its assets to generate sales revenue. A higher turnover ratio indicates that the company is effectively using its assets to drive sales, which can be a positive sign of operational efficiency. Overall, the stability of the total asset turnover ratio indicates that McCormick is maintaining a consistent level of asset utilization over the analyzed period.