McCormick & Company Incorporated (MKC)
Cash ratio
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 186,100 | 166,600 | 334,000 | 351,700 | 423,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,882,800 | 3,098,900 | 3,432,400 | 3,223,800 | 3,046,500 |
| Cash ratio | 0.06 | 0.05 | 0.10 | 0.11 | 0.14 |
November 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($186,100K
+ $—K)
÷ $2,882,800K
= 0.06
The cash ratio of McCormick & Company Incorporated has exhibited a downward trend over the past five years, declining from 0.14 in November 30, 2020, to 0.06 in November 30, 2024. This indicates that the company's ability to cover its short-term liabilities solely with cash and cash equivalents has weakened over the period under review. The decreasing trend in the cash ratio suggests potential challenges in meeting immediate financial obligations using available liquid assets. Management may need to assess and enhance the company's liquidity position to ensure sustainable operations and financial stability in the future.