McCormick & Company Incorporated (MKC)
Operating return on assets (Operating ROA)
| 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 income (ttm) | US$ in thousands | 997,500 | 963,000 | 930,100 | 920,300 | 855,700 | 863,600 | 875,500 | 905,500 | 985,700 | 1,015,100 | 1,013,800 | 1,021,600 | 1,041,600 | 999,500 | 1,023,800 | 1,004,300 | 955,000 | 957,700 | 950,000 | 926,400 |
| Total assets | US$ in thousands | 12,890,100 | 12,862,300 | 12,990,100 | 12,908,200 | 13,205,400 | 13,124,900 | 12,941,000 | 12,957,900 | 12,940,800 | 12,905,800 | 12,884,400 | 12,810,500 | 12,685,100 | 12,089,700 | 10,860,700 | 10,576,100 | 10,491,700 | 10,362,100 | 10,366,000 | 10,236,700 |
| Operating ROA | 7.74% | 7.49% | 7.16% | 7.13% | 6.48% | 6.58% | 6.77% | 6.99% | 7.62% | 7.87% | 7.87% | 7.97% | 8.21% | 8.27% | 9.43% | 9.50% | 9.10% | 9.24% | 9.16% | 9.05% |
February 29, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $997,500K ÷ $12,890,100K
= 7.74%
Operating return on assets (operating ROA) measures the efficiency of McCormick & Company Incorporated in generating operating profits from its assets. Over the past 20 quarters, McCormick's operating ROA has fluctuated between 6.48% and 9.43%, with an average of approximately 7.98%.
The trend indicates that McCormick has been able to maintain a relatively stable operating ROA over the period, with some fluctuations. The highest operating ROA was recorded in the third quarter of 2020 at 9.43%, while the lowest was in the first quarter of 2020 at 6.48%.
Overall, the consistent performance in generating operating profits relative to its assets demonstrates McCormick's operational efficiency and ability to utilize its assets effectively to generate returns for its shareholders.