McCormick & Company Incorporated (MKC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 186,100 | 200,800 | 166,300 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | -429,100 | — | — | — |
| Total current liabilities | US$ in thousands | 2,882,800 | 3,144,300 | 2,984,300 | 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 |
| Cash ratio | 0.06 | 0.06 | 0.06 | 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 |
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 shown fluctuations over the specified periods. The company's cash ratio ranged from a low of -0.00 on November 30, 2020, to a high of 0.12 on two occasions, May 31, 2020, and May 31, 2021. This ratio indicates the firm's ability to cover its short-term obligations with its available cash and cash equivalents.
Overall, the cash ratio of McCormick & Company has generally been within a fairly stable range between 0.05 and 0.12 over the analyzed periods. It is important to note that a higher cash ratio signifies a stronger ability to meet short-term liabilities using cash on hand. Maintaining a healthy cash ratio is essential for ensuring the company's liquidity and financial stability. A consistent trend in the cash ratio over time is crucial for assessing the company's financial health and its ability to weather economic uncertainties.