McCormick & Company Incorporated (MKC)
Debt-to-capital ratio
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,593,600 | 3,343,100 | 3,325,800 | 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 |
| Total stockholders’ equity | US$ in thousands | 5,291,000 | 5,421,500 | 5,327,400 | 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 |
| Debt-to-capital ratio | 0.40 | 0.38 | 0.38 | 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 |
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 gradually decreasing over the past few years, starting at 0.50 in February 2020 and reaching 0.40 by November 2024. This indicates that the company has been reducing its reliance on debt in relation to its total capital structure over time. A lower debt-to-capital ratio suggests a lower financial risk and a stronger balance sheet, as it reflects a higher proportion of the company's capital funded by equity rather than debt. The downward trend in the ratio for McCormick & Company suggests a potential improvement in its financial health and overall stability.