Accounts Receivable are created when a customer has received a product but has not yet paid for that product. McCormick's accounts receivables for the quarter that ended in Feb. 2024 was $568 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
McCormick's Days Sales Outstanding for the quarter that ended in Feb. 2024 was 32.31.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. McCormick's Net-Net Working Capital per share for the quarter that ended in Feb. 2024 was $-24.18.
McCormick Accounts Receivable Historical Data
The historical data trend for McCormick's Accounts Receivable can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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McCormick Annual Data
Trend
Nov14
Nov15
Nov16
Nov17
Nov18
Nov19
Nov20
Nov21
Nov22
Nov23
Accounts Receivable
502.90
528.50
549.50
573.70
587.50
McCormick Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
Accounts Receivable
571.00
557.20
624.50
587.50
567.50
McCormick Accounts Receivable Calculation
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
McCormick Accounts Receivable Explanation
1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.
McCormick's Days Sales Outstanding for the quarter that ended in Feb. 2024 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.
If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.
Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.
McCormick Accounts Receivable Related Terms
Thank you for viewing the detailed overview of McCormick's Accounts Receivable provided by GuruFocus.com. Please click on the following links to see related term pages.
In its more-than 130-year history, McCormick has grown to become the leading global manufacturer, marketer, and distributor of spices, herbs, extracts, seasonings, and other flavorings. Beyond end consumers, McCormick's customer base also includes top quick-service restaurants, retail grocery chains, and other packaged food and beverage manufacturers. And its reach is global, with nearly 40% of sales generated beyond its home turf to include 150 other countries and territories. In addition to its namesake brand, the firm's portfolio includes Old Bay, Zatarain's, Thai Kitchen, Frank's RedHot, French's, and the Cholula brand.
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