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GuruFocus has detected 4 Warning Signs with McCormick & Co Inc $MKC.
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McCormick & Co Inc (NYSE:MKC)
Net Margin %
9.06% (As of Feb. 2017)

Net margin is calculated as net income divided by its revenue. McCormick & Co Inc's net income for the three months ended in Feb. 2017 was $95 Mil. McCormick & Co Inc's revenue for the three months ended in Feb. 2017 was $1,044 Mil. Therefore, McCormick & Co Inc's net margin for the quarter that ended in Feb. 2017 was 9.06%.

MKC' s Net Margin % Range Over the Past 10 Years
Min: 7.89   Max: 11.09
Current: 10.66

7.89
11.09
MKC's Net Margin % is ranked higher than
80% of the 1565 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.98 vs. MKC: 10.66 )

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 & Co Inc's Net Margin for the fiscal year that ended in Nov. 2016 is calculated as

Net Margin=Net Income (A: Nov. 2016 )/Revenue (A: Nov. 2016 )
=471/4411.5
=10.68 %

McCormick & Co Inc's Net Margin for the quarter that ended in Feb. 2017 is calculated as

Net Margin=Net Income (Q: Feb. 2017 )/Revenue (Q: Feb. 2017 )
=94.6/1043.7
=9.06 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

McCormick & Co Inc Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15Nov16
netmargin 7.898.059.3911.0910.1010.169.4710.389.3610.68

McCormick & Co Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
netmargin 12.647.108.359.0312.419.138.8211.7112.669.06
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