McCormick & Company, Inc. is one of the world’s leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormick’s consolidated balance sheets for 2012 and 2013 follow.
Refer to the information for McCormick above. Additional information for 2013 is as follows (amounts in millions):
Total credit sales (all on credit) .... $4,123.4
Costs of goods sold ......... 2,457.6
Net income ........... 389.0
Compute the following ratios for 2013. Provide a brief description of what each ratio reveals about McCormick.
1. Return on common equity
2. Debt-to-assets
3. Debt-to-equity
4. Current
5. Quick (McCormick uses cash and equivalents, short-term securities, and receivables in their quick ratio calculation.)
6. Inventory turnover days
7. Accounts receivable turnover days
8. Accounts payable turnover days
9. Operating cycle (in days)
10. Total asset turnover

  • CreatedOctober 05, 2015
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