McCormick & Company Incorporated (MKC)
Return on equity (ROE)
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 788,500 | 680,600 | 682,000 | 755,300 | 747,400 |
| Total stockholders’ equity | US$ in thousands | 5,291,000 | 5,060,700 | 4,680,500 | 4,411,000 | 3,926,100 |
| ROE | 14.90% | 13.45% | 14.57% | 17.12% | 19.04% |
November 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $788,500K ÷ $5,291,000K
= 14.90%
The return on equity (ROE) for McCormick & Company Incorporated has shown a gradual decline over the years based on the provided data. In November 2020, the ROE stood at 19.04%, indicating that for every dollar of shareholders' equity, the company generated a profit of 19.04 cents.
Subsequently, the ROE decreased to 17.12% by November 2021 and further dropped to 14.57% by November 2022. This trend suggests that the company's ability to generate profits from shareholders' equity has been decreasing.
By November 2023, the ROE decreased to 13.45%, marking a continued decrease in profitability relative to equity. However, there was a slight improvement in November 2024, with the ROE rising to 14.90%.
Overall, the decreasing trend in ROE indicates that McCormick & Company may be facing challenges in efficiently utilizing shareholders' equity to generate profits. It would be important for the company to assess and address the factors contributing to this decline to improve its profitability and overall financial performance.