McCormick & Company Incorporated (MKC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.54% | 38.48% | 38.05% | 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% |
| Operating profit margin | 15.77% | 15.74% | 15.11% | 14.89% | 14.45% | 14.08% | 14.12% | 13.38% | 13.60% | 13.71% | 14.28% | 15.50% | 16.07% | 16.50% | 16.95% | 17.74% | 17.84% | 18.52% | 18.51% | 17.92% |
| 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% |
| Net profit margin | 11.73% | 11.87% | 11.07% | 10.56% | 10.22% | 9.80% | 10.74% | 10.42% | 10.74% | 10.86% | 10.78% | 11.77% | 11.95% | 12.34% | 12.48% | 13.02% | 13.34% | 13.75% | 13.74% | 13.13% |
The profitability ratios of McCormick & Company Incorporated have displayed fluctuations over the past few years.
1. Gross profit margin has slightly decreased from 40.32% in February 2020 to 38.54% in November 2024, indicating a decline in profitability related to the cost of goods sold.
2. Operating profit margin, which was at 17.92% in February 2020, fluctuated but generally decreased to 15.77% in November 2024, highlighting potential inefficiencies in operating expenses management.
3. Pretax margin also showed a downward trend, decreasing from 16.23% in February 2020 to 14.46% in November 2024, suggesting challenges in generating profits before taxes.
4. Net profit margin experienced a similar downward trajectory, declining from 13.13% in February 2020 to 11.73% in November 2024, indicating declining profitability after accounting for all expenses and taxes.
Overall, the declining trend in profitability ratios suggests potential challenges in maintaining and increasing profitability for McCormick & Company Incorporated, necessitating a closer look at cost management and revenue generation strategies.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.11% | 7.96% | 7.78% | 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% |
| Return on assets (ROA) | 6.03% | 6.00% | 5.69% | 5.49% | 5.29% | 4.98% | 5.42% | 5.04% | 5.20% | 5.36% | 5.27% | 5.78% | 5.85% | 5.89% | 5.87% | 6.03% | 6.18% | 7.00% | 7.05% | 6.67% |
| Return on total capital | 13.30% | 13.42% | 12.99% | 12.91% | 12.66% | 12.06% | 11.84% | 11.80% | 12.01% | 11.82% | 11.29% | 12.30% | 12.94% | 12.99% | 12.10% | 12.40% | 13.77% | 14.15% | 13.77% | 14.22% |
| Return on equity (ROE) | 14.90% | 14.62% | 13.88% | 13.52% | 13.45% | 12.81% | 14.17% | 13.68% | 14.57% | 15.12% | 14.86% | 16.28% | 17.12% | 17.29% | 17.39% | 18.42% | 19.04% | 19.33% | 20.44% | 19.64% |
McCormick & Company Incorporated's profitability ratios have shown a declining trend over the analyzed period.
- Operating return on assets (Operating ROA) has decreased from 9.10% in February 2020 to 6.58% in November 2022, with a slight increase to 7.16% by August 2023 and further improvement to 7.49% by November 2023. It continued to rise, reaching 8.11% by November 2024. This indicates that the company's operating performance relative to its total assets has fluctuated but improved overall in the later periods.
- Return on assets (ROA) also saw a similar pattern, declining from 6.67% in February 2020 to 5.04% in February 2023 before bouncing back to 6.03% in February 2024. This suggests that the company's overall profitability in relation to its assets experienced ups and downs but managed to recover by the end of the period.
- Return on total capital followed a comparable trend, starting at 14.22% in February 2020, dropping to 11.29% in May 2022, and then gradually rising to 13.30% by November 2024. This ratio indicates the company's ability to generate returns from its total invested capital, showing fluctuations but an overall improvement by the end of the period.
- Return on equity (ROE) exhibited a consistent decline from 19.64% in February 2020 to 13.68% in February 2023, before recovering slightly to 14.90% by November 2024. This indicates that shareholders' returns relative to their equity investment decreased over the analyzed period but showed signs of improvement in the later periods.
Overall, while McCormick & Company's profitability ratios fluctuated and declined during the observation period, there were some signs of recovery in the later periods, suggesting potential improvements in the company's operational efficiency and profitability in the future.