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McCormick Financial Strength

: 5 (As of May. 2022)
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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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

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.


Competitive Comparison

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.

   

McCormick Financial Strength Distribution

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.



McCormick Financial Strength Calculation

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.


McCormick  (NYSE:MKC) Financial Strength Explanation

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.


McCormick Financial Strength Related Terms

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.


McCormick Business Description

McCormick logo
Address
24 Schilling Road, Suite 1, Hunt Valley, MD, USA, 21031
In its 130-year history, McCormick has grown to become the leading global manufacturer, marketer, and distributor of spices, herbs, extracts, seasonings, and other flavorings. Beyond end consumers, McCormick's customer base also includes top quick-service restaurants, retail grocery chains, and other packaged food manufacturers, with about 30% of sales generated beyond its home turf to include 150 other countries and territories. In addition to its namesake brand, the firm's portfolio includes Old Bay, Zatarain's, Thai Kitchen, Frank's RedHot, French's, and the recently acquired Cholula brand.
Executives
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

McCormick Headlines

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