McCormick & Company Incorporated (MKC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,070,300 | 13,204,900 | 12,987,600 | 12,890,100 | 12,862,300 | 12,990,100 | 12,908,200 | 13,205,400 | 13,124,900 | 12,941,000 | 12,957,900 | 12,940,800 | 12,905,800 | 12,884,400 | 12,810,500 | 12,685,100 | 12,089,700 | 10,860,700 | 10,576,100 | 10,491,700 |
| 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 |
| Financial leverage ratio | 2.47 | 2.44 | 2.44 | 2.46 | 2.54 | 2.57 | 2.61 | 2.71 | 2.80 | 2.82 | 2.82 | 2.81 | 2.93 | 2.94 | 2.96 | 3.06 | 3.08 | 2.76 | 2.90 | 2.95 |
November 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,070,300K ÷ $5,291,000K
= 2.47
The financial leverage ratio of McCormick & Company Incorporated has shown a fluctuating trend over the past few years. The ratio decreased from 2.95 on February 29, 2020, to a low of 2.44 on May 31, 2024, before slightly increasing to 2.47 on November 30, 2024.
During this period, the company's leverage ratio ranged between 2.44 and 3.08, indicating moderate to high financial leverage at different points in time. A lower ratio suggests lower financial risk and a stronger equity position, while a higher ratio indicates higher financial risk and reliance on debt financing.
Overall, McCormick & Company's leverage ratio has slightly decreased and stabilized in recent periods, which may suggest a more balanced capital structure and potentially reduced financial risk compared to earlier years. The company's ability to manage its debt levels effectively will be crucial in maintaining financial stability and sustainable growth in the future.