McCormick & Company Incorporated (MKC)
Debt-to-assets ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,339,900 | 3,642,300 | 3,973,300 | 3,753,800 | 3,625,800 |
| Total assets | US$ in thousands | 12,862,300 | 13,124,900 | 12,905,800 | 12,089,700 | 10,362,100 |
| Debt-to-assets ratio | 0.26 | 0.28 | 0.31 | 0.31 | 0.35 |
November 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,339,900K ÷ $12,862,300K
= 0.26
The debt-to-assets ratio of McCormick & Co., Inc. has trended downwards over the past five years, indicating a positive shift in the company's capital structure. The ratio decreased from 0.42 in 2019 to 0.34 in 2023. This suggests that the company has been able to reduce its reliance on debt financing in proportion to its total assets, which may reflect a stronger financial position and lower financial risk. A decreasing trend in the debt-to-assets ratio generally indicates improved solvency and financial stability. However, it is important to consider the reasons behind this trend, as a significant decrease in the ratio could also signal underutilization of debt to leverage the company's operations and growth opportunities.