Commercial Metals Company (CMC)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 1.23% | 3.22% | 4.54% | 9.07% | 10.15% | 13.31% | 13.16% | 9.55% | 7.46% | 2.37% | -0.04% | 3.62% | 2.53% | 2.59% | 3.32% | 3.05% | 3.62% | 2.98% | 1.46% | 0.28% |
| Pretax margin | 10.63% | 11.81% | 12.81% | 13.25% | 14.03% | 17.01% | 16.62% | 16.17% | 14.52% | 9.79% | 8.03% | 7.07% | 6.28% | 6.39% | 6.85% | 6.99% | 6.99% | 6.00% | 4.64% | 4.03% |
| Net profit margin | 8.13% | 9.07% | 9.82% | 10.45% | 11.10% | 13.31% | 13.35% | 12.77% | 11.52% | 8.02% | 6.21% | 5.43% | 4.75% | 4.79% | 5.15% | 5.36% | 5.34% | 4.44% | 3.43% | 2.95% |
The profitability ratios of Commercial Metals Company have shown fluctuations over the past few quarters.
Gross profit margin has declined from 16.79% in November 2022 to 7.67% in February 2024, indicating a decrease in profitability from sales after deducting the cost of goods sold. This downward trend suggests potential challenges in managing production costs efficiently.
Operating profit margin has also seen a decline, dropping from 13.31% in November 2022 to 1.23% in February 2024. This indicates that the company's operating expenses relative to revenue have increased significantly, impacting its ability to generate profits from core operations.
Pretax margin, which reflects the company's earnings before taxes, has fluctuated but generally remained at a moderate level, ranging from 4.03% in May 2019 to 17.01% in November 2022. This suggests varying levels of efficiency in managing tax liabilities and expenses relative to revenue.
Net profit margin, which indicates the company's profitability after accounting for all expenses and taxes, has also shown fluctuations. It decreased from 13.31% in November 2022 to 8.13% in February 2024. This decline in net profit margin suggests that the company's bottom-line profitability has been impacted by increased expenses relative to revenue.
Overall, while Commercial Metals Company has exhibited varying levels of profitability ratios over the quarters, the recent decline in gross profit margin, operating profit margin, and net profit margin indicates potential challenges in cost management and revenue generation that may require further investigation and attention.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.55% | 4.11% | 5.99% | 12.84% | 14.35% | 18.77% | 19.23% | 13.25% | 10.57% | 3.63% | -0.06% | 4.98% | 3.44% | 3.50% | 4.42% | 4.29% | 5.40% | 4.60% | 2.25% | 0.41% |
| Return on assets (ROA) | 10.21% | 11.56% | 12.95% | 14.79% | 15.71% | 18.77% | 19.52% | 17.71% | 16.33% | 12.32% | 8.91% | 7.48% | 6.47% | 6.48% | 6.85% | 7.53% | 7.97% | 6.87% | 5.27% | 4.34% |
| Return on total capital | 22.03% | 24.75% | 28.20% | 31.54% | 36.17% | 45.89% | 47.65% | 45.11% | 41.10% | 30.53% | 25.55% | 22.35% | 20.17% | 21.01% | 22.96% | 25.24% | 27.10% | 24.94% | 20.89% | 18.70% |
| Return on equity (ROE) | 16.11% | 18.31% | 20.86% | 23.97% | 27.56% | 34.77% | 37.04% | 34.40% | 31.32% | 23.41% | 18.00% | 15.23% | 13.08% | 13.45% | 14.79% | 16.55% | 17.73% | 15.38% | 12.20% | 10.46% |
Commercial Metals Company's profitability ratios have shown fluctuating trends over the period analyzed.
- Operating return on assets (Operating ROA) ranged from as low as -0.06% to a high of 19.23%, with the latest figure at 1.55%. This indicates the company's ability to generate operating income from its assets has varied, potentially impacted by operational efficiency and asset utilization.
- Return on assets (ROA) varied between 4.34% and 18.77%, with the latest figure at 10.21%. This metric reflects the company's overall profitability in relation to its total assets, indicating how efficiently the company is using its assets to generate profits.
- Return on total capital fluctuated between 18.70% and 47.65%, with the latest figure at 22.03%. This ratio indicates the company's ability to generate profits from its total capital, including both debt and equity, giving insight into the overall returns to all capital providers.
- Return on equity (ROE) ranged from 10.46% to 37.04%, with the latest figure at 16.11%. ROE reflects the company's ability to generate profits from shareholder equity and is crucial for understanding how well the company is utilizing shareholder funds to generate returns.
Overall, Commercial Metals Company has demonstrated varying levels of profitability over the analyzed period, with some fluctuations seen in the different profitability ratios. Further analysis of the company's financial performance and underlying factors affecting profitability would provide valuable insights into its overall financial health.