McCormick & Company Incorporated (MKC)
Return on total capital
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,181,900 | 1,063,300 | 999,700 | 1,084,600 | 1,057,900 |
| Long-term debt | US$ in thousands | 3,593,600 | 3,339,900 | 3,642,300 | 3,973,300 | 3,753,800 |
| Total stockholders’ equity | US$ in thousands | 5,291,000 | 5,060,700 | 4,680,500 | 4,411,000 | 3,926,100 |
| Return on total capital | 13.30% | 12.66% | 12.01% | 12.94% | 13.77% |
November 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,181,900K ÷ ($3,593,600K + $5,291,000K)
= 13.30%
Return on total capital for McCormick & Company Incorporated has shown a slight fluctuation over the past five years. Starting at 13.77% in November 2020, it dipped to 12.94% in November 2021, and further decreased to 12.01% in November 2022. However, there was a turnaround in November 2023 with a rise to 12.66%, and the trend continued positively with a higher return of 13.30% in November 2024. Despite the variations, McCormick & Company Incorporated's return on total capital generally remained above 12%, indicating the company's ability to generate profits relative to its total invested capital.