McCormick & Company Incorporated (MKC)
Debt-to-equity ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,339,900 | 3,642,300 | 3,973,300 | 3,753,800 | 3,625,800 |
| Total stockholders’ equity | US$ in thousands | 5,060,700 | 4,680,500 | 4,411,000 | 3,926,100 | 3,444,200 |
| Debt-to-equity ratio | 0.66 | 0.78 | 0.90 | 0.96 | 1.05 |
November 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,339,900K ÷ $5,060,700K
= 0.66
The debt-to-equity ratio of McCormick & Co., Inc. has exhibited a declining trend over the past five years, indicating a strengthening financial position in terms of leverage. In November 2023, the ratio stood at 0.87, a decrease from 1.10 in November 2022 and a significant reduction from 1.26 in November 2019. This suggests that the company is relying less on debt financing and has been able to increase its equity base relative to its debt. A lower debt-to-equity ratio is generally viewed positively by investors and creditors as it signifies lower financial risk and a greater capacity to meet debt obligations. Overall, the decreasing trend in the debt-to-equity ratio reflects a more favorable capital structure for McCormick & Co., Inc., and implies a stronger financial position.