McCormick & Company Incorporated (MKC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,232,500 | 5,060,700 | 5,049,300 | 4,937,000 | 4,870,100 | 4,680,500 | 4,589,300 | 4,598,200 | 4,597,700 | 4,411,000 | 4,386,500 | 4,325,300 | 4,149,500 | 3,926,100 | 3,932,700 | 3,649,900 | 3,561,900 | 3,444,200 | 3,468,700 | 3,370,900 |
| Debt-to-capital ratio | 0.39 | 0.40 | 0.40 | 0.45 | 0.43 | 0.44 | 0.46 | 0.46 | 0.46 | 0.47 | 0.48 | 0.52 | 0.53 | 0.49 | 0.49 | 0.53 | 0.50 | 0.51 | 0.53 | 0.54 |
February 29, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,329,100K ÷ ($3,329,100K + $5,232,500K)
= 0.39
The debt-to-capital ratio of McCormick & Company Incorporated has shown a fluctuating trend over the past several quarters. The ratio has ranged between 0.39 to 0.54, indicating a moderate level of debt relative to the company's capital structure.
In recent periods, the ratio has generally remained within the range of 0.40 to 0.47, with some fluctuations above and below this range. This suggests that McCormick & Company has been managing its debt levels relative to its capital base, although there has been a slight upward trend in the ratio over the past few quarters.
The increase in the debt-to-capital ratio from 0.39 in February 2020 to 0.54 in May 2021 may indicate that the company has taken on more debt relative to its total capital during this period. However, it is essential to assess the company's overall financial health, liquidity, and ability to service its debt obligations in conjunction with this ratio to gain a comprehensive understanding of its financial position.