Market Cap : 24.64 B | Enterprise Value : 29.67 B | PE Ratio : 36.30 | PB Ratio : 5.36 |
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McCormick has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.McCormick's Interest Coverage for the quarter that ended in May. 2022 was 5.16. McCormick's debt to revenue ratio for the quarter that ended in May. 2022 was 0.87. As of today, McCormick's Altman Z-Score is 2.74.
For the Packaged Foods subindustry, McCormick's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Consumer Packaged Goods industry and Consumer Defensive sector, McCormick's Financial Strength distribution charts can be found below:
* The bar in red indicates where McCormick's Financial Strength falls into.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
McCormick's Interest Expense for the months ended in May. 2022 was $-34 Mil. Its Operating Income for the months ended in May. 2022 was $174 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2022 was $3,920 Mil.
McCormick's Interest Coverage for the quarter that ended in May. 2022 is
Interest Coverage | = | -1 | * | Operating Income (Q: May. 2022 ) | / | Interest Expense (Q: May. 2022 ) |
= | -1 | * | 173.8 | / | -33.7 | |
= | 5.16 |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
McCormick's Debt to Revenue Ratio for the quarter that ended in May. 2022 is
Debt to Revenue Ratio | = | Total Debt (Q: May. 2022 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (1437.8 | + | 3920.3) | / | 6147.2 | |
= | 0.87 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
McCormick has a Z-score of 2.74, indicating it is in Grey Zones. This implies that McCormick is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.74 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
McCormick has the Financial Strength Rank of 5.
Thank you for viewing the detailed overview of McCormick's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Repas Gregory | officer: V.P.& Asst. CFO | 24 SCHILLING CIRCLE SUITE 1 HUNT VALLEY MD 21031 |
Bramman Anne L | director | 207 GOODE AVENUE GLENDALE CA 91203 |
Vernon W Anthony | director | C/O AXOVANT SCIENCES, INC. 320 WEST 37TH STREET NEW YORK NY 10018 |
Conway Michael Aaron | director | 18 LOVETON CIRCLE SPARKS MD 21152 |
Rodkin Gary M | director | 700 ANDERSON HILL RD PURCHASE NJ 10577 |
Montiel Maritza Gomez | director | C/O APTARGROUP, INC. 265 EXCHANGE DRIVE, SUITE 100 CRYSTAL LAKE IL 60014 |
Schwartz Jeffery D | officer: Vice President, Gen Counsel | 18 LOVETON CIRCLE SPARKS MD 21152 |
Mangan Michael D | director | 2041 ISLA VISTA LANE NAPLES FL 34105 |
Little Patricia A | director | 999 W BIG BEAVER ROAD TROY MI 48084 |
Smith Michael R | officer: Executive VP & CFO | 18 LOVETON CIRCLE SPARKS MD 21152 |
Rimmer Nneka Louise | officer: Sr. VP Corp Strategy & Develop | 18 LOVETON CIRCLE SPARKS MD 21152 |
Swift Malcolm | officer: President Global Industrial & | 18 LOVETON CIRCLE SPARKS MD 21152 |
Manzone Lisa | officer: Sr. VP Global Human Relations | 18 LOVETON CIRCLE SPARKS MD 21152 |
Foley Brendan M | officer: President Global Consumer | 18 LOVETON CIRCLE SPARKS MD 21152 |
Mcmullen Christina M | officer: Vice President & Controller | BLACK & DECKER CORP 701 EAST JOPPA ROAD TOWSON MD 21286 |
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