MillerKnoll Inc (MLKN)
Fixed asset turnover
| Aug 31, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Mar 4, 2023 | Dec 3, 2022 | Sep 3, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,543,600 | 7,706,000 | 7,817,700 | 7,936,600 | 8,100,200 | 4,176,800 | 4,230,500 | 4,199,000 | 3,907,600 | 3,428,600 | 2,996,200 | 2,601,900 | 2,454,300 | 2,308,500 | 2,384,400 | 2,432,800 | 2,477,600 | 2,672,900 | 2,629,100 | 2,610,500 |
| Property, plant and equipment | US$ in thousands | 490,100 | 506,200 | 517,900 | 529,900 | 536,300 | 542,700 | 554,600 | 559,500 | 581,500 | 584,300 | 590,800 | 611,700 | 327,200 | 326,000 | 325,900 | 327,700 | 330,800 | 341,600 | 339,800 | 337,500 |
| Fixed asset turnover | 7.23 | 15.22 | 15.09 | 14.98 | 15.10 | 7.70 | 7.63 | 7.50 | 6.72 | 5.87 | 5.07 | 4.25 | 7.50 | 7.08 | 7.32 | 7.42 | 7.49 | 7.82 | 7.74 | 7.73 |
August 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,543,600K ÷ $490,100K
= 7.23
Fixed asset turnover measures how efficiently a company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Analyzing MillerKnoll Inc's fixed asset turnover over the provided periods shows a fluctuating trend. The ratio ranges from 4.25 to 15.22, indicating significant variance in the efficiency of the company's fixed asset utilization. During the most recent period, as of August 31, 2024, the fixed asset turnover is 7.23, reflecting a moderate level of efficiency in converting fixed assets into sales.
Looking at trends over time, there is evidence of some stability in the fixed asset turnover ratio, with fluctuations around a general range. However, the company experienced a notable increase in efficiency in utilizing fixed assets in the first quarter of 2024, with a ratio of 15.22, signaling a significant improvement in asset utilization.
Overall, the analysis suggests that MillerKnoll Inc has been moderately efficient in generating sales from its fixed assets, with occasional periods of higher or lower efficiency. Continued monitoring of the fixed asset turnover ratio will be essential to track the company's ongoing performance in optimizing its fixed asset investments.