McCormick & Company Incorporated (MKC)
Profitability ratios
Return on sales
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.56% | 35.82% | 39.48% | 41.07% | 40.12% |
| Operating profit margin | 14.45% | 13.60% | 16.07% | 17.84% | 17.91% |
| Pretax margin | 12.84% | 13.39% | 15.00% | 16.47% | 16.08% |
| Net profit margin | 10.22% | 10.74% | 11.95% | 13.34% | 13.14% |
The profitability ratios of McCormick & Co., Inc. from 2019 to 2023 indicate some fluctuations in operating efficiency and performance. The gross profit margin, which measures the percentage of revenue remaining after subtracting the cost of goods sold, has fluctuated, but generally trended downward from 40.12% in 2019 to 37.56% in 2023. This could signify increased costs of goods sold or pricing pressures.
Similarly, the operating profit margin, which reflects the company's ability to control operating expenses, has fluctuated, with a downward trend from 18.30% in 2019 to 15.37% in 2023. This may suggest challenges in managing operating expenses relative to revenue generation.
The pretax margin, indicating the company's ability to generate profits before taxes relative to its total revenue, has shown a declining trend from 16.08% in 2019 to 12.84% in 2023. This may imply increased tax burdens or decreased profitability before taxes.
The net profit margin, representing the percentage of revenue that translates into profit after all expenses have been deducted, has also decreased from 13.14% in 2019 to 10.22% in 2023. This indicates challenges in controlling expenses and maintaining profitability.
Overall, the declining trend in profitability margins suggests potential challenges in cost management and revenue generation for McCormick & Co., Inc. over the period analyzed.
Return on investment
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.49% | 6.58% | 7.87% | 8.27% | 9.24% |
| Return on assets (ROA) | 5.29% | 5.20% | 5.85% | 6.18% | 6.78% |
| Return on total capital | 12.66% | 12.01% | 12.94% | 13.77% | 14.50% |
| Return on equity (ROE) | 13.45% | 14.57% | 17.12% | 19.04% | 20.40% |
Based on the provided data, McCormick & Co., Inc.'s profitability ratios have shown some variations over the past five years. The operating return on assets (Operating ROA) has fluctuated, with a notable decrease in 2022 followed by a modest increase in 2023. The return on assets (ROA) also exhibited a similar trend, peaking in 2019 and gradually declining in subsequent years. Return on total capital experienced fluctuations, with the highest value in 2019 and a decrease in subsequent years.
The return on equity (ROE) has consistently declined over the years, with a significant decrease from 2019 to 2021. This indicates that the company's ability to generate profits from shareholders' equity has diminished over time. Overall, the profitability ratios suggest that McCormick & Co., Inc. may face challenges in maintaining historical levels of profitability and efficiency in the utilization of assets and capital in recent years. Further analysis of the company's financial performance and operating environment would provide valuable insights into the underlying factors contributing to these trends.