| | | | | Table 1 |
| | | | | eVal Assumptions for |
| | | | | Organic Growth & Merger / Acquisition Strategies |
| Company Name | | McCormick & Co., Inc. |
| | | | | Current Year | Forecast Organic Growth | Forecast Merger / Acquisition | Explanation of Assumptions |
| Income Statement Assumptions |
| Sales Growth | | | | 2.9% | 2.9% | 2.9% |
| Cost of Goods Sold/Sales | | | | 57.3% | 57.3% | 57.3% |
| R&D/Sales | | | | 1.5% | 1.5% | 1.5% |
| SG&A/Sales | | | | 25.0% | 25.0% | 25.0% |
| Dep&Amort/Avge PP&E and Intang. | | | | 3.1% | 3.1% | 3.1% |
| Net Interest Expense/Avge Net Debt | | | | 3.9% | 3.9% | 3.9% |
| Non-Operating Income/Sales | | | | 0.6% | 0.6% | 0.6% |
| Effective Tax Rate | | | | 25.0% | 25.0% | 25.0% |
| Minority Interest/After Tax Income | | | | -19.3% | -19.3% | -19.3% |
| Other Income/Sales | | | | 0.0% | 0.0% | 0.0% |
| Ext. Items & Disc. Ops./Sales | | | | 0.0% | 0.0% | 0.0% |
| Pref. Dividends/Avge Pref. Stock | | | | 0.0% | 0.0% | 0.0% |
| Balance Sheet Assumptions |
| Working Capital Assumptions |
| Ending Operating Cash/Sales | | | | 2.0% | 2.0% | 2.0% |
| Ending Receivables/Sales | | | | 11.6% | 11.6% | 11.6% |
| Ending Inventories/COGS | | | | 29.4% | 29.4% | 29.4% |
| Ending Other Current Assets/Sales | | | | 2.9% | 2.9% | 2.9% |
| Ending Accounts Payable/COGS | | | | 15.3% | 15.3% | 15.3% |
| Ending Taxes Payable/Sales | | | | 0.0% | 0.0% | 0.0% |
| Ending Other Current Liabs/Sales | | | | -18.4% | -18.4% | -18.4% |
| Other Operating Asset Assumptions |
| Ending Net PP&E/Sales | | | | 14.2% | 14.2% | 14.2% |
| Ending Investments/Sales | | | | 6.3% | 6.3% | 6.3% |
| Ending Intangibles/Sales | | | | 48.4% | 48.4% | 48.4% |
| Ending Other Assets/Sales | | | | 1.7% | 1.7% | 1.7% |
| Other Operating Liability Assumptions |
| Other Liabilities/Sales | | | | 8.5% | 8.5% | 8.5% |
| Deferred Taxes/Sales | | | | 2.5% | 2.5% | 2.5% |
| Financing Assumptions |
| Current Debt/Total Assets | | | | 6.1% | 6.1% | 6.1% |
| Long-Term Debt/Total Assets | | | | 23.0% | 23.0% | 23.0% |
| Minority Interest/Total Assets | | | | 0.4% | 0.4% | 0.4% |
| Preferred Stock/Total Assets | | | | 0.0% | 0.0% | 0.0% |
| Dividend Payout Ratio | | | | 43.9% | 43.9% | 43.9% |
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analysis_of_eval_assumptions_example.xlsx
