McCormick & Company Incorporated (MKC)
Debt-to-capital ratio
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.40 | 0.40 | 0.44 | 0.47 | 0.49 |
November 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,593,600K ÷ ($3,593,600K + $5,291,000K)
= 0.40
The debt-to-capital ratio of McCormick & Company Incorporated has been showing a decreasing trend over the past five years. As of November 30, 2020, the ratio was 0.49, indicating that 49% of the company's capital was financed through debt. By November 30, 2024, the ratio had decreased to 0.40, suggesting a decrease in reliance on debt financing to 40% of the company's capital.
A decreasing debt-to-capital ratio is generally viewed positively as it signifies a lower level of financial risk for the company. McCormick & Company's decreasing ratio could indicate effective management of debt levels, improved financial stability, and potentially better access to capital markets at favorable terms.
It is important to note that the interpretation of the debt-to-capital ratio should be considered alongside other financial metrics and factors to gain a comprehensive understanding of the company's financial health and risk profile.