McCormick Balance Sheet Health
Financial Health criteria checks 3/6
McCormick has a total shareholder equity of $5.4B and total debt of $4.5B, which brings its debt-to-equity ratio to 83.5%. Its total assets and total liabilities are $13.0B and $7.6B respectively. McCormick's EBIT is $1.0B making its interest coverage ratio 6.1. It has cash and short-term investments of $166.3M.
Key information
83.5%
Debt to equity ratio
US$4.47b
Debt
| Interest coverage ratio | 6.1x |
| Cash | US$166.30m |
| Equity | US$5.35b |
| Total liabilities | US$7.63b |
| Total assets | US$12.99b |
Financial Position Analysis
Short Term Liabilities: MKC.V's short term assets ($2.1B) do not cover its short term liabilities ($3.0B).
Long Term Liabilities: MKC.V's short term assets ($2.1B) do not cover its long term liabilities ($4.6B).
Debt to Equity History and Analysis
Debt Level: MKC.V's net debt to equity ratio (80.4%) is considered high.
Reducing Debt: MKC.V's debt to equity ratio has reduced from 138.3% to 83.5% over the past 5 years.
Debt Coverage: MKC.V's debt is well covered by operating cash flow (25.6%).
Interest Coverage: MKC.V's interest payments on its debt are well covered by EBIT (6.1x coverage).