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Cashflow Statement for McCormick & Co.

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Cashflow Statement for McCormick & Co.

The cashflow statement for McCormick & Co. indicates the various aspects of changes in

the sources of capital for the investing activities, operations and financing aspect of the business.

The cashflow statant depicts changes of the various elements each year in the particular

operations.

Sources of cashflow

The three sources of cashflow as illustrated by McCormick & Co. include operating

activities, investment activities, and financing activities. The net cashflow provided by the

investment activities for McCormick & Co. for the year $1248.1 million, which was a significant

increase from $651.5 million in the year and $828.3 million in the financial year 2021. The

investing activities is the second categories of sources of cashflow from the company. In tis case,

the company’s net cash for investing activities -$260.5 million, which decreased from -$146.4

million in 2022. The amount was a significant increase from $908.6 million in the financial year

2021. The other sources of the cashflow for the McCormick & Co. was the financing activities.

The financing activities for the company accounted for -$1184.2 million in the year 2023, which

was a decrease from -$487.2 million in 2022.In the 2021, the company got a whooping $22

million as cashflows from this investing activities.

Comparing FY2023 & FY2022 EBITDA to Cash Flow from Operations

The EBITDA for McCormick & Co. in the Financial year 2022 and 2023 was 812.8

million and 798.7 million. On the other hand, he cashflow from operating activities was 651.5

million for the financial year 2022 and 1248.1 million for the financial year 2023. The various

factors that attribute the differences between EBITDA and cash flow from operations include
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earnings before interest, taxes, depreciation, and amortization, for the EBITDA. On the other

hand, cash from operations take into accounts the actual cash generated form the core businesses

of the company. In the financial year 2023, the depreciation and amortization amounted to 199.3

million and 200.6 million in 2022. The changes in the operating assets and liabilities are other

significant aspects to look for insight. In the year 2023, there was a significant change in the

inventories, trade accounts receivable, and trade accounts payable that had a significant impact in

the cashflow from operations.

Changes in Working Capital Impact on Cash Flow

2023 Changes in Current Assets

Current Assets -167.4

Changes in Current Liability 402.1

Changes in Working Capital -569.5

2022 Current Assets -17.7

Changes in Current Liability -209.9

Changes in Working Capital 192.2

2021 Current Assets -71.9

Changes in Current Liability -37.4

Changes in Working Capital -34.5

In each of the three years, the changes in the working capital had a significant impact on

the cashflow from the operating activities. In 2023, the changes in working capital amounted to -

569.5Million which indicates the use of cash flow. Hence, more cash was utilized as working
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capital in 2023 compared to the previous years. Secondly, the change in the working capital in

the year 2022 amounted to 192.2Million suggesting that less cash was tied up a working capital

and hence a source of cashflow. The particular working capital indicates that the decrease in the

current liabilities overweighed the decrease in the current assets. Lastly, the year 2021 accounted

for -34 million as changes in working capital. Thus , the increase in the current liabilities

overweigh the decrease in current assets in the particular year.