McCormick & Company Incorporated (MKC)
Debt-to-equity 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-equity ratio | 0.68 | 0.66 | 0.78 | 0.90 | 0.96 |
November 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,593,600K ÷ $5,291,000K
= 0.68
Based on the provided data, McCormick & Company Incorporated's debt-to-equity ratio has been gradually decreasing over the past five years. The ratio stood at 0.96 in November 30, 2020, and has since shown a declining trend, reaching 0.68 by November 30, 2024.
This decreasing trend indicates that the company has been reducing its reliance on debt financing in comparison to its equity financing. A decreasing debt-to-equity ratio can be a positive indicator, suggesting improved financial stability and reduced financial risk for the company.
Overall, the decreasing trend in McCormick & Company Incorporated's debt-to-equity ratio over the past five years reflects a prudent approach to managing its capital structure and financial obligations. It indicates a favorable balance between debt and equity, which may enhance the company's long-term sustainability and ability to weather financial challenges.