Commercial Metals Company (CMC)

Gross profit margin

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Gross profit (ttm)	US$ in thousands	641,973	761,695	876,790	1,481,437	1,572,205	1,571,292	1,492,828	1,078,434	844,020	694,547	514,761	591,415	651,432	785,344	944,798	934,050	950,350	882,773	803,488	734,240
Revenue (ttm)	US$ in thousands	8,364,790	8,536,410	8,759,370	9,226,700	9,389,600	9,361,170	9,117,680	8,467,780	7,801,570	7,252,900	6,656,150	6,046,880	5,534,950	5,430,800	5,429,840	5,563,710	5,833,520	5,888,080	5,776,260	5,541,700
Gross profit margin		7.67%	8.92%	10.01%	16.06%	16.74%	16.79%	16.37%	12.74%	10.82%	9.58%	7.73%	9.78%	11.77%	14.46%	17.40%	16.79%	16.29%	14.99%	13.91%	13.25%

February 29, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $641,973K ÷ $8,364,790K
= 7.67%

The gross profit margin of Commercial Metals Company has shown fluctuations over the past years, ranging from 7.67% to 17.40%. In the most recent period, as of February 29, 2024, the gross profit margin stands at 7.67%, indicating that for every dollar of revenue generated, the company retains $0.0767 as gross profit.

The downward trend in the gross profit margin over the past few quarters may suggest challenges in managing production costs or pricing pressures. It is important for the company to closely monitor its cost structure and pricing strategies to improve profitability.

Comparing the current gross profit margin of 7.67% to historical levels, it is notably lower than the higher levels observed in previous periods, such as the 17.40% gross profit margin recorded in August 31, 2020. This indicates a potential decline in the company's ability to generate profits from its core operations.

Analyzing the gross profit margin trends can provide insights into the efficiency of the company's production processes, pricing strategy, and overall cost management. Management may need to focus on improving operational efficiency and cost controls to enhance profitability in the upcoming periods.