McCormick & Company Incorporated (MKC)
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 | 2,538,900 | 2,502,500 | 2,425,600 | 2,369,500 | 2,277,000 | 2,274,500 | 2,353,000 | 2,385,900 | 2,477,500 | 2,494,600 | 2,452,400 | 2,443,100 | 2,408,000 | 2,300,400 | 2,269,700 | 2,219,300 | 2,148,300 | 2,145,300 | 2,120,300 | 2,102,900 |
| Revenue (ttm) | US$ in thousands | 6,699,400 | 6,662,200 | 6,605,100 | 6,516,000 | 6,393,600 | 6,350,500 | 6,385,100 | 6,338,900 | 6,358,800 | 6,317,900 | 6,145,500 | 6,026,400 | 5,870,800 | 5,601,300 | 5,528,200 | 5,427,100 | 5,327,900 | 5,347,400 | 5,330,500 | 5,319,500 |
| Gross profit margin | 37.90% | 37.56% | 36.72% | 36.36% | 35.61% | 35.82% | 36.85% | 37.64% | 38.96% | 39.48% | 39.91% | 40.54% | 41.02% | 41.07% | 41.06% | 40.89% | 40.32% | 40.12% | 39.78% | 39.53% |
February 29, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,538,900K ÷ $6,699,400K
= 37.90%
The gross profit margin of McCormick & Company Incorporated has fluctuated over the analyzed periods. In general, the company has maintained a relatively stable gross profit margin, ranging from a low of 35.61% to a high of 41.07%. The margin peaked at 41.07% as of February 28, 2021, and has shown a slight downward trend since then.
The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's efficiency in managing production costs. A higher gross profit margin suggests that the company retains a larger portion of revenue as gross profit, which can be used to cover operating expenses and generate profits.
It is important to monitor changes in the gross profit margin over time to assess the company's pricing strategy, cost control measures, and overall profitability. A consistent or improving gross profit margin is generally seen as a positive indicator of the company's operational performance and financial health.