Commercial Metals Company (CMC)

Gross profit margin

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Gross profit	US$ in thousands	586,867	1,081,820	1,491,840	527,675	944,798
Revenue	US$ in thousands	7,878,070	8,759,230	9,122,140	6,669,820	5,420,640
Gross profit margin		7.45%	12.35%	16.35%	7.91%	17.43%

August 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $586,867K ÷ $7,878,070K
= 7.45%

Commercial Metals Company's gross profit margin has fluctuated over the past five years, ranging from a low of 7.45% in 2024 to a high of 17.43% in 2020. The company's gross profit margin indicates the percentage of revenue remaining after deducting the cost of goods sold, reflecting its ability to control production costs and generate profits from its core operations.

In 2024, the gross profit margin decreased to 7.45%, representing a decline in the company's ability to generate profits from its sales. This may be attributed to factors such as increasing raw material costs, inefficient production processes, or pricing pressures in the market.

In contrast, the company recorded a relatively high gross profit margin of 17.43% in 2020, indicating strong profitability relative to its cost of goods sold. This could be a result of effective cost management, economies of scale, or favorable market conditions during that period.

Overall, the fluctuation in Commercial Metals Company's gross profit margin suggests varying levels of operational efficiency and profitability. Further analysis of the company's cost structure, pricing strategies, and market dynamics may help in understanding the factors driving these changes in gross profit margin over the years.