McCormick & Company Incorporated (MKC)
Debt-to-equity 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-equity ratio | 0.68 | 0.62 | 0.62 | 0.64 | 0.66 | 0.67 | 0.83 | 0.74 | 0.78 | 0.85 | 0.85 | 0.86 | 0.90 | 0.91 | 1.09 | 1.14 | 0.96 | 0.95 | 1.13 | 1.02 |
November 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,593,600K ÷ $5,291,000K
= 0.68
The debt-to-equity ratio of McCormick & Company Incorporated has shown a generally decreasing trend from February 29, 2020, when it was at 1.02, to November 30, 2024, when it stood at 0.68. This trend indicates that the company has been reducing its reliance on debt financing in relation to equity over the period under review. A decreasing debt-to-equity ratio can be interpreted as a positive sign, suggesting improved financial health and stability, as the company is using less debt to finance its operations compared to its equity. The gradual decline in this ratio highlights a potentially stronger financial position and better capacity to meet financial obligations through a more conservative financing mix. It is important for investors and stakeholders as it indicates the company's ability to manage its debt and equity structure effectively.