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McCormick & Company Inc (NYSE:MKC)
Net Margin
9.03% (As of Aug. 2015)

Net margin is calculated as net income divided by its revenue. McCormick & Company Inc's net income for the three months ended in Aug. 2015 was $96 Mil. McCormick & Company Inc's revenue for the three months ended in Aug. 2015 was $1,060 Mil. Therefore, McCormick & Company Inc's net margin for the quarter that ended in Aug. 2015 was 9.03%.

MKC' s Net Margin Range Over the Past 10 Years
Min: 7.44   Max: 11.09
Current: 9.36

7.44
11.09
MKC's Net Margin is ranked higher than
78% of the 1506 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.07 vs. MKC: 9.36 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

McCormick & Company Inc's Net Margin for the fiscal year that ended in Nov. 2015 is calculated as

Net Margin=Net Income (A: Nov. 2015 )/Revenue (A: Nov. 2015 )
=401.6/4296.3
=9.35 %

McCormick & Company Inc's Net Margin for the quarter that ended in Aug. 2015 is calculated as

Net Margin=Net Income (Q: Aug. 2015 )/Revenue (Q: Aug. 2015 )
=95.7/1059.9
=9.03 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

McCormick & Company Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
netmargin 7.447.898.059.3911.0910.1010.169.4710.389.35

McCormick & Company Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
netmargin 10.2711.118.418.2411.8212.437.108.359.0312.41
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