McCormick & Company Incorporated (MKC)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 788,500 | 792,600 | 739,600 | 707,500 | 680,600 | 647,000 | 699,800 | 666,200 | 682,000 | 693,700 | 683,200 | 748,400 | 755,300 | 758,600 | 752,300 | 764,500 | 747,400 | 760,100 | 745,900 | 699,400 |
| Total assets | US$ in thousands | 13,070,300 | 13,204,900 | 12,987,600 | 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 |
| 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% |
November 30, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $788,500K ÷ $13,070,300K
= 6.03%
The return on assets (ROA) for McCormick & Company Incorporated has shown a decreasing trend over the last few years. From February 2020 to November 2024, the ROA has declined from 6.67% to 6.03% before experiencing a slight increase to 6.03% in November 2024. This indicates that the company's ability to generate profits from its assets has slightly improved towards the end of the period but is still below the initial level in February 2020.
The fluctuation in ROA may be attributed to changes in the company's profitability and asset management efficiency. A decreasing ROA could indicate factors such as declining profitability relative to the size of the asset base or inefficiencies in asset utilization. On the other hand, an increasing ROA, albeit marginal, signals potential improvements in profitability or asset management practices.
It would be essential for McCormick & Company to closely monitor its ROA and investigate the underlying reasons behind the fluctuations to maintain or enhance its financial performance going forward. Additionally, the company may need to implement strategies to optimize asset utilization and profitability to drive future ROA improvements.