McCormick & Company Incorporated (MKC)
Gross profit margin
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,591,000 | 2,502,500 | 2,274,500 | 2,494,600 | 2,300,400 |
| Revenue | US$ in thousands | 6,723,700 | 6,662,200 | 6,350,500 | 6,317,900 | 5,601,300 |
| Gross profit margin | 38.54% | 37.56% | 35.82% | 39.48% | 41.07% |
November 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,591,000K ÷ $6,723,700K
= 38.54%
McCormick & Company Incorporated has shown fluctuations in its gross profit margin over the past five years. The gross profit margin decreased from 41.07% as of November 30, 2020, to 39.48% as of November 30, 2021, indicating a slight decrease in the profitability of the company's core operations.
However, the trend continued with a more pronounced decline in the gross profit margin to 35.82% as of November 30, 2022, suggesting potential challenges in managing production costs or pricing strategies during that period.
The company then showed signs of improvement as the gross profit margin increased to 37.56% by November 30, 2023, which may indicate successful cost management initiatives or adjustments in product pricing strategies.
The positive trend continued into the most recent period, with the gross profit margin further improving to 38.54% as of November 30, 2024. This suggests that McCormick & Company may have implemented effective strategies to enhance its profitability and optimize its cost structure.
Overall, while there have been fluctuations in McCormick & Company's gross profit margin over the years, the recent upward trend indicates a positive trajectory in the company's profitability and efficiency in managing its production costs. Monitoring this metric will be crucial for evaluating the company's operational performance and financial health in the coming years.