McCormick & Company Incorporated (MKC)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,329,100 | 3,339,900 | 3,385,300 | 4,117,600 | 3,619,800 | 3,642,300 | 3,904,800 | 3,920,300 | 3,964,500 | 3,973,300 | 3,985,000 | 4,735,900 | 4,739,200 | 3,753,800 | 3,737,500 | 4,113,600 | 3,627,900 | 3,625,800 | 3,843,100 | 3,977,500 |
| Total assets | US$ in thousands | 12,890,100 | 12,862,300 | 12,990,100 | 12,908,200 | 13,205,400 | 13,124,900 | 12,941,000 | 12,957,900 | 12,940,800 | 12,905,800 | 12,884,400 | 12,810,500 | 12,685,100 | 12,089,700 | 10,860,700 | 10,576,100 | 10,491,700 | 10,362,100 | 10,366,000 | 10,236,700 |
| Debt-to-assets ratio | 0.26 | 0.26 | 0.26 | 0.32 | 0.27 | 0.28 | 0.30 | 0.30 | 0.31 | 0.31 | 0.31 | 0.37 | 0.37 | 0.31 | 0.34 | 0.39 | 0.35 | 0.35 | 0.37 | 0.39 |
February 29, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,329,100K ÷ $12,890,100K
= 0.26
The debt-to-assets ratio of McCormick & Company Incorporated has shown some fluctuations over the past few quarters. The ratio was relatively stable around 0.26 to 0.28 from November 2020 to August 2022, indicating that the company had a reasonable level of debt in relation to its total assets during that period.
However, there was an increase in the debt-to-assets ratio to 0.37 in February 2023, which suggests that the company took on more debt compared to its assets in that quarter. This increase could indicate a potential risk as higher debt levels may lead to increased financial leverage and potential difficulties in meeting debt obligations.
The ratio decreased slightly in the following quarters but remained elevated compared to the earlier period, hovering around 0.31 to 0.35 from August 2022 to February 2024. This indicates a continued presence of debt relative to assets, which investors and creditors should monitor closely for its impact on the company's financial health and risk profile.
Overall, the trend in McCormick & Company's debt-to-assets ratio highlights the importance of monitoring changes in the company's capital structure and debt management practices to assess its financial stability and risk exposure.