McCormick & Company Incorporated (MKC)
Quick ratio
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 186,100 | 166,600 | 334,000 | 351,700 | 423,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 587,400 | 587,500 | 573,700 | 549,500 | 528,500 |
| Total current liabilities | US$ in thousands | 2,882,800 | 3,098,900 | 3,432,400 | 3,223,800 | 3,046,500 |
| Quick ratio | 0.27 | 0.24 | 0.26 | 0.28 | 0.31 |
November 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($186,100K
+ $—K
+ $587,400K)
÷ $2,882,800K
= 0.27
The quick ratio of McCormick & Company Incorporated has experienced a downward trend in recent years, declining from 0.31 as of November 30, 2020, to 0.27 as of November 30, 2024. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over this period. A quick ratio below 1.0 generally suggests a potential liquidity risk, as it may indicate that the company may struggle to cover its current liabilities with readily available assets. While a quick ratio of 0.27 is below the ideal threshold of 1.0, further analysis is needed to understand the company's overall liquidity position and the factors contributing to this trend.