1. Ratios Analysis: McCormick

   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.

   McCormick: Consolidated Balance Sheets
   	Dollar Amounts in Millions
   	2012	2013
   Assets
   Current Assets
   Cash and Equivalents	$ 79.0	$ 63.0
   Receivables	465.9	495.5
   Inventories	615.0	676.9
   Prepaid Expenses and Other Assets	125.5	134.8
   Total Current Assets	$ 1,285.4	$ 1,370.2
   Property and Equipment, Net	547.3	576.6
   Goodwill	1,695.3	1,798.5
   Intangible Assets, net	323.5	333.4
   Investments and Other Assets	313.9	371.0
   Total Assets	$ 4,165.4	$ 4,449.7
   Liabilities and Shareholders' Equity
   Current Liabilities
   Short-Term Borrowings	$ 140.3	$ 211.6
   Current Portion of Long-Term Debt	252.3	2.5
   Trade Accounts Payable	375.8	387.3
   Other Accrued Liabilities	419.2	461.7
   Total Current Liabilities	$ 1,187.6	$ 1,063.1
   Long-Term Debt	779.2	1,019.0
   Other Long-Term Liabilities	498.4	419.9
   Total Liabilities	$ 2,465.2	$ 2,502.0
   Shareholders' Equity
   Common Stock	908.2	962.4
   Retained Earnings	934.6	970.4
   Accumulated Other Comprehensive Loss	(159.9)	(0.3)
   Noncontrolling interests	17.3	15.2
   Total Shareholders' Equity	$ 1,700.2	$ 1,947.7
   Total Liabilities and Shareholders' Equity	$ 4,165.4	$ 4,449.7

   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

   Required:

   Compute the following ratios for 2013. Provide a brief description of what each ratio reveals about McCormick.

   1. Return on common equity = $ (Round your answer to three decimal places.)
   2. Debt-to-assets = $ (Round your answer to three decimal places.)
   3. Debt-to-equity = $ (Round your answer to two decimal places.)
   4. Current = $ (Round your answer to two decimal places.)
   5. Quick = $ (Round your answer to two decimal places.)
   6. Inventory turnover days = days (Use 365 days. Round your answer to one decimal place.)
   7. Accounts receivable turnover days = days (Use 365 days. Round your answer to one decimal place.)
   8. Accounts payable turnover days = days (Use 365 days. Round your answer to one decimal place.)
   9. Operating cycle (in days) = days (Use 365 days. Round your answer to one decimal place.)
   10. Total asset turnover = $ (Round your answer to two decimal places.)