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McCormick & Company, Inc. (NYSE:MKC)
Net Margin
8.30% (As of Feb. 2014)

Net margin is calculated as net income divided by its revenue. McCormick & Company, Inc.'s net income for the three months ended in Feb. 2014 was $83 Mil. McCormick & Company, Inc.'s revenue for the three months ended in Feb. 2014 was $993 Mil. Therefore, McCormick & Company, Inc.'s net margin for the quarter that ended in Feb. 2014 was 8.30%.

MKC' s 10-Year Net Margin Range
Min: 2.42   Max: 11.09
Current: 9.4

2.42
11.09
MKC's Net Marginis ranked higher than
86% of the 1416 Companies
in the Global Packaged Foods industry.

( Industry Median: 3.99 vs. MKC: 9.40 )

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. 2013 is calculated as

Net Margin=Net Income (A: Nov. 2013 )/Revenue (A: Nov. 2013 )
=387.7/4123.4
=9.40 %

McCormick & Company, Inc.'s Net Margin for the quarter that ended in Feb. 2014 is calculated as

Net Margin=Net Income (Q: Feb. 2014 )/Revenue (Q: Feb. 2014 )
=82.5/993.4
=8.30 %

* 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

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
netmargin 8.498.297.447.898.059.3911.0910.1210.119.40

McCormick & Company, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
netmargin 11.878.228.2210.7212.658.137.8810.2910.918.30
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