McCormick & Company Incorporated (MKC)
Return on equity (ROE)
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 702,700 | 703,300 | 684,900 |
| Total stockholders’ equity | US$ in thousands | 5,232,500 | 5,060,700 | 5,049,300 | 4,937,000 | 4,870,100 | 4,680,500 | 4,589,300 | 4,598,200 | 4,597,700 | 4,411,000 | 4,386,500 | 4,325,300 | 4,149,500 | 3,926,100 | 3,932,700 | 3,649,900 | 3,561,900 | 3,444,200 | 3,468,700 | 3,370,900 |
| ROE | 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% | 20.40% | 20.28% | 20.32% |
February 29, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $707,500K ÷ $5,232,500K
= 13.52%
The return on equity (ROE) for McCormick & Company Incorporated has shown some fluctuation over the past few quarters. The ROE ranged from 12.81% to 20.44% during the period under examination.
The company's ROE peaked at 20.44% in the quarter ending May 31, 2020, indicating robust profitability relative to shareholders' equity during that period. However, there was a slight decline in the subsequent quarters, with ROE hovering around the mid-teens to high teens range.
Overall, McCormick & Company has maintained a healthy ROE above 12%, reflecting efficient utilization of shareholder funds to generate profits. Investors typically view a higher ROE favorably as it indicates the company's ability to generate profit from each dollar of shareholder equity. The upward trend in ROE from 2019 to 2020 indicates improving profitability, but the slight decline in recent quarters may warrant further analysis to understand the underlying factors influencing the company's return on equity.