McCormick & Company Incorporated (MKC)
Debt-to-equity 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-equity ratio | 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 | 1.05 | 1.11 | 1.18 |
February 29, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,329,100K ÷ $5,232,500K
= 0.64
The debt-to-equity ratio of McCormick & Company Incorporated has fluctuated over the periods provided, ranging from 0.64 to 1.18. A debt-to-equity ratio of 0.64 indicates that for every dollar of equity, the company has $0.64 in debt.
The ratio increased to 1.18, signaling a decrease in equity relative to debt. This may suggest increased financial risk as the company relies more on debt financing. On the other hand, a lower ratio such as 0.64 reflects a stronger equity position compared to debt, indicating a more conservative financial structure.
Overall, fluctuations in the debt-to-equity ratio suggest changes in the company's capital structure and financial leverage over time. It is important to further analyze the company's financial health, profitability, and cash flow to gain a comprehensive understanding of its financial position.