McCormick & Company Incorporated (MKC)
Pretax margin
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 855,100 | 850,600 | 948,000 | 922,300 | 860,100 |
| Revenue | US$ in thousands | 6,662,200 | 6,350,500 | 6,317,900 | 5,601,300 | 5,347,400 |
| Pretax margin | 12.84% | 13.39% | 15.00% | 16.47% | 16.08% |
November 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $855,100K ÷ $6,662,200K
= 12.84%
The pretax margin of McCormick & Co., Inc. has experienced a declining trend over the past five years. In November 2023, the pretax margin decreased to 12.84% from 13.39% in the previous year. This downward trend is notable as it indicates that the company's profitability before taxes has been decreasing. Possible contributing factors could include an increase in operating expenses, a decrease in gross margins, or declining revenues. Furthermore, it is essential for the company to closely examine the causes behind this trend and implement strategies to improve its pretax margin in order to sustain profitability and investor confidence.