MillerKnoll Inc (MLKN)
Total asset turnover
| May 31, 2024 | Jun 3, 2023 | May 31, 2023 | May 31, 2022 | May 28, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,628,400 | 8,100,200 | 4,087,100 | 3,946,000 | 7,841,800 |
| Total assets | US$ in thousands | 4,043,600 | 4,274,800 | 4,274,800 | 4,509,200 | 4,514,000 |
| Total asset turnover | 0.90 | 1.89 | 0.96 | 0.88 | 1.74 |
May 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,628,400K ÷ $4,043,600K
= 0.90
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue relative to its total assets. A higher total asset turnover ratio indicates that the company is more effective in utilizing its assets to generate sales.
Based on the data provided for MillerKnoll Inc, the total asset turnover ratio fluctuated over the period under review. It was 1.74 on May 28, 2022, decreased to 0.88 on May 31, 2022, increased slightly to 0.96 on May 31, 2023, surged to 1.89 on June 3, 2023, and then dropped to 0.90 on May 31, 2024.
The significant fluctuations in the total asset turnover ratio may suggest varying levels of efficiency in utilizing assets to generate sales revenue. It is crucial for the company to analyze the underlying reasons behind these fluctuations, as consistent and optimal asset utilization is key to sustainable profitability and growth in the long run. Additional analysis of operational and financial factors impacting asset turnover is necessary to understand the company's overall performance and identify opportunities for improvement.