MKCNEUTRAL

Return on Equity (ROE)

24.7%

Updated 270h ago

Sector Performance

75th percentile

MKC

24.7%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

McCormick’s current Return on Equity (ROE) of 24.7% means that for every dollar of shareholder equity, the company generated about 24.7 cents in profit over the past year — a measure of how efficiently it uses investors’ money.

That figure sits well above the sector median of 13.9%, placing MKC in the 74th percentile among its industry peers, indicating above-average profitability relative to competitors. Trend data is limited: the year‑over‑year change is not available, but the quarter‑over‑quarter change shows a decline of 2.4%, moving from 25.3% to 24.7% in the latest period. The combination of a high ROE level with a small recent dip suggests the company remains strong operationally, though the downward move adds a modest caution flag about near‑term momentum. This metric supports the overall NEUTRAL verdict: the superior level justifies ongoing attention, but the lack of a clear upward trend prevents a more bullish call.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about MKC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are MKC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.