McCormick & Company, Incorporated stock research
FY2023 Q4
McCormick & (MKC) Gross Margin — Quarter Ended Nov 30, 2023
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue remained stable. As a result, gross margin improved.
Gross margin takeaway
Quarter ended Nov 30, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue remained stable. As a result, gross margin improved.
- The gross margin improvement was driven by higher revenue with stable cost of revenue.
- Gross margin this quarter was higher than both the immediately preceding quarter and the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.0%
Gross profit
$701.3M
Revenue
$1.8B
Cost of revenue
$1.1B
Quarter-over-quarter change
+3.0 pts
Year-over-year change
+3.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 28, 2023 | $1.6B | $562.9M | $1.0B | 36.0% |
| May 31, 2023 | $1.7B | $615.5M | $1.0B | 37.1% |
| Aug 31, 2023 | $1.7B | $622.8M | $1.1B | 37.0% |
| Nov 30, 2023 | $1.8B | $701.3M | $1.1B | 40.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2023
+3.0 pts
Year-over-year change
Nov 30, 2022
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by higher revenue with stable cost of revenue.
Gross margin this quarter was higher than both the immediately preceding quarter and the same quarter one year earlier.
Monitor whether revenue growth can be sustained without a proportional increase in cost of revenue.