Cal-Maine Foods Inc (CALM)
Gross profit margin
| Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 541,571 | 553,227 | 797,681 | 1,024,400 | 1,196,457 | 1,193,450 | 822,006 | 547,904 | 337,059 | 179,903 | 135,838 | 150,542 | 160,662 | 244,243 | 246,554 | 217,478 | 179,588 | 70,833 | 103,446 | 144,606 |
| Revenue (ttm) | US$ in thousands | 2,348,374 | 2,396,265 | 2,688,969 | 2,962,667 | 3,155,135 | 3,059,414 | 2,534,012 | 2,123,411 | 1,796,346 | 1,553,178 | 1,434,020 | 1,388,348 | 1,348,981 | 1,452,523 | 1,439,031 | 1,403,225 | 1,351,609 | 1,178,848 | 1,217,253 | 1,261,771 |
| Gross profit margin | 23.06% | 23.09% | 29.66% | 34.58% | 37.92% | 39.01% | 32.44% | 25.80% | 18.76% | 11.58% | 9.47% | 10.84% | 11.91% | 16.82% | 17.13% | 15.50% | 13.29% | 6.01% | 8.50% | 11.46% |
June 1, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $541,571K ÷ $2,348,374K
= 23.06%
The gross profit margin of Cal-Maine Foods Inc has fluctuated over the past few periods. It started at a relatively low level of 11.46% in August 2019 and showed an increasing trend until reaching a peak of 39.01% in February 2023. However, the margin declined in subsequent periods, dropping to 23.06% in June 2024.
The downward trend in the gross profit margin could be concerning as it indicates that the company's profitability from its core operations has weakened in recent periods. This decline may be attributed to various factors such as increased production costs, pricing pressures, or changes in sales mix.
As an analyst, it would be essential to further investigate the reasons behind the fluctuation in the gross profit margin and assess the company's ability to manage costs, maintain pricing power, and optimize its revenue streams. A declining gross profit margin could impact the overall financial performance and sustainability of Cal-Maine Foods Inc in the long run.