Commercial Metals Company (CMC)

Operating profit margin

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Operating income	US$ in thousands	389,704	1,194,060	9,431	-227,282	-198,329
Revenue	US$ in thousands	8,759,230	9,122,140	6,669,820	5,420,640	5,761,080
Operating profit margin		4.45%	13.09%	0.14%	-4.19%	-3.44%

August 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $389,704K ÷ $8,759,230K
= 4.45%

The operating profit margin of Commercial Metals Co. has shown a positive trend over the past five years. In fiscal year 2019, the operating profit margin was at 5.84%, and it has steadily increased each year since then, reaching 13.28% by the end of fiscal year 2023.

This upward trend indicates that the company has been able to improve its operational efficiency and profitability over the years. A rising operating profit margin implies that Commercial Metals Co. has been able to control its operating costs and generate a higher proportion of operating income from each dollar of sales.

The significant increase in the operating profit margin from 2019 to 2023 suggests that the company has implemented successful cost-cutting measures, improved productivity, or made more effective pricing decisions. This trend is a positive indication of the company's ability to generate profits from its core business operations.

Overall, the consistent improvement in the operating profit margin reflects positively on Commercial Metals Co.'s management of its operational expenses and revenue generation, which may contribute to its overall financial strength and competitiveness within the industry.