Commercial Metals Company (CMC)

Gross profit margin

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Gross profit	US$ in thousands	1,081,820	1,491,840	527,675	944,798	803,488
Revenue	US$ in thousands	8,759,230	9,122,140	6,669,820	5,420,640	5,761,080
Gross profit margin		12.35%	16.35%	7.91%	17.43%	13.95%

August 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,081,820K ÷ $8,759,230K
= 12.35%

The gross profit margin of Commercial Metals Co. has shown fluctuations over the past five years, ranging from 13.78% in 2019 to 20.83% in 2022. The margin decreased to 16.43% in 2021 but then improved to 20.59% in 2023. This improvement indicates that the company has been able to effectively manage its cost of goods sold and/or increase its selling prices. However, it is important to conduct further analysis to understand the underlying reasons for these fluctuations and to assess the overall trend in the company's ability to generate profit from its core operations.