McCormick & Company Incorporated (MKC)
Pretax margin
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 972,500 | 966,500 | 915,200 | 897,200 | 855,100 | 817,600 | 887,000 | 834,800 | 850,600 | 866,300 | 828,000 | 916,900 | 948,000 | 951,600 | 960,700 | 967,900 | 922,300 | 943,900 | 919,600 | 864,800 |
| Revenue (ttm) | US$ in thousands | 6,723,700 | 6,678,500 | 6,683,400 | 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 |
| Pretax margin | 14.46% | 14.47% | 13.69% | 13.39% | 12.84% | 12.38% | 13.61% | 13.06% | 13.39% | 13.57% | 13.06% | 14.42% | 15.00% | 15.48% | 15.94% | 16.49% | 16.47% | 17.07% | 16.94% | 16.23% |
November 30, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $972,500K ÷ $6,723,700K
= 14.46%
The pretax margin of McCormick & Company Incorporated has shown fluctuations over the periods indicated. From February 29, 2020, to November 30, 2024, the pretax margin ranged from a high of 17.07% in August 31, 2020, to a low of 12.38% in August 31, 2023.
Overall, there has been a slight downward trend in the pretax margin from around 16%-17% in the earlier periods to around 13%-14% in the latter periods. This indicates that the company may be facing some challenges in maintaining its profitability before taxes.
Management should investigate the factors contributing to the decline in pretax margin in recent periods and consider implementing strategies to improve profitability, potentially through cost control measures, revenue enhancement initiatives, or operational efficiencies. Regular monitoring and analysis of the pretax margin will be crucial for the company to make informed decisions and sustain its financial health.