McCormick & Company Incorporated (MKC)
Quick 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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 567,500 | 587,500 | 624,500 | 557,200 | 571,000 | 573,700 | 565,800 | 493,100 | 516,700 | 549,500 | 541,000 | 500,400 | 515,900 | 528,500 | 496,500 | 494,300 | 409,900 | 502,900 | 494,600 | 429,000 |
| 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 |
| Quick ratio | 0.25 | 0.24 | 0.25 | 0.28 | 0.28 | 0.26 | 0.29 | 0.26 | 0.28 | 0.28 | 0.27 | 0.33 | 0.32 | 0.17 | 0.37 | 0.43 | 0.28 | 0.31 | 0.32 | 0.31 |
February 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($178,000K
+ $—K
+ $567,500K)
÷ $2,973,800K
= 0.25
The quick ratio of McCormick & Company Incorporated has shown some variability over the past few quarters, ranging from 0.17 to 0.43. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
In this case, the quick ratio has generally stayed below 1, signaling potential liquidity challenges for McCormick. It is noteworthy that the ratio has not consistently improved or worsened over the periods analyzed. While a quick ratio of 0.25 to 0.28 indicates that McCormick may struggle to cover its short-term obligations with its liquid assets alone, it is important to consider other factors such as cash flows and access to credit facilities when assessing the company's overall financial health.