McCormick & Company Incorporated (MKC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 178,000 | 166,600 | 154,700 | 127,400 | 356,800 | 334,000 | 343,900 | 325,800 | 338,400 | 351,700 | 312,600 | 291,800 | 256,100 | 423,600 | 221,000 | 185,000 | 170,800 | 155,400 | 162,900 | 139,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | -429,100 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,973,800 | 3,098,900 | 3,171,000 | 2,487,100 | 3,321,000 | 3,432,400 | 3,140,400 | 3,133,000 | 3,076,700 | 3,223,800 | 3,161,300 | 2,381,200 | 2,423,700 | 3,046,500 | 1,953,500 | 1,582,300 | 2,072,400 | 2,154,400 | 2,030,400 | 1,860,100 |
| Cash ratio | 0.06 | 0.05 | 0.05 | 0.05 | 0.11 | 0.10 | 0.11 | 0.10 | 0.11 | 0.11 | 0.10 | 0.12 | 0.11 | -0.00 | 0.11 | 0.12 | 0.08 | 0.07 | 0.08 | 0.07 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($178,000K
+ $—K)
÷ $2,973,800K
= 0.06
The cash ratio for McCormick & Company Incorporated has been relatively stable over the period analyzed. The ratio ranged from 0.05 to 0.12, indicating that the company holds between 5% to 12% of its current liabilities in cash and cash equivalents.
The cash ratio dipped to 0.05 in the recent quarters but showed improvement in the earlier periods, reaching 0.11 and 0.12. Notably, the cash ratio turned negative in February 2021, suggesting a situation where the company's cash and cash equivalents were insufficient to cover its current liabilities at that specific point in time.
Overall, a consistently low cash ratio may indicate a potential liquidity risk for the company, as it may struggle to meet its short-term obligations if necessary. However, analysis should also consider other liquidity measures and operational factors to gain a comprehensive understanding of McCormick & Company's financial position.