McCormick & Company Incorporated (MKC)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,020,200 | 2,001,600 | 2,127,500 | 2,104,000 | 2,411,300 | 2,386,700 | 2,412,800 | 2,324,700 | 2,239,000 | 2,195,800 | 2,160,900 | 2,052,600 | 1,954,700 | 2,083,600 | 1,759,600 | 1,615,700 | 1,524,400 | 1,550,200 | 1,589,400 | 1,473,100 |
| 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 |
| Current ratio | 0.68 | 0.65 | 0.67 | 0.85 | 0.73 | 0.70 | 0.77 | 0.74 | 0.73 | 0.68 | 0.68 | 0.86 | 0.81 | 0.68 | 0.90 | 1.02 | 0.74 | 0.72 | 0.78 | 0.79 |
February 29, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,020,200K ÷ $2,973,800K
= 0.68
The current ratio of McCormick & Company Incorporated has fluctuated over the past few years, ranging from 0.65 to 1.02. The current ratio of the company measures its ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.
In February 2020, the company had a current ratio of 0.74, which improved to 1.02 in May 2020, indicating a significant increase in liquidity. However, this ratio dropped to 0.68 in August 2020 and remained relatively stable around this level until May 2021.
From August 2021 to November 2021, the current ratio remained at 0.68, reflecting consistent liquidity levels. It then increased to 0.86 in February 2022 before declining slightly in the following months. The ratio reached its lowest point of 0.65 in November 2023 and has shown some variability since then.
Overall, the current ratio of McCormick & Company Incorporated has had some fluctuations, indicating fluctuations in the company's ability to cover its short-term obligations. It would be important to monitor this ratio closely to assess the company's liquidity position moving forward and ensure it maintains a healthy balance between current assets and current liabilities.