MillerKnoll Inc (MLKN)
Profitability ratios
Return on sales
| May 31, 2025 | May 31, 2024 | Jun 3, 2023 | May 31, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.76% | 39.12% | 17.65% | 34.99% | 34.28% |
| Operating profit margin | 1.38% | 4.61% | 1.51% | 2.99% | 5.05% |
| Pretax margin | -0.60% | 2.75% | 0.58% | 1.26% | -0.22% |
| Net profit margin | -1.01% | 2.27% | 0.52% | 1.03% | -0.50% |
The profitability ratios of MillerKnoll Inc. over the specified periods reveal notable fluctuations indicative of changing operational performance and market conditions.
The gross profit margin demonstrates an overall upward trend from 34.28% on May 31, 2022, to a peak of 39.12% on May 31, 2024, before slightly declining to 38.76% by May 31, 2025. This suggests that the company's ability to control direct costs and manage product margins has generally improved, particularly evident in the period leading up to May 31, 2024. A significant anomaly occurs on June 3, 2023, where the gross margin sharply drops to 17.65%, likely reflecting extraordinary circumstances such as costs spike, product mix changes, or accounting adjustments.
Operating profit margins exhibit considerable volatility, starting at 5.05% in 2022, decreasing to 2.99% in 2023, and further diminishing to 1.51% on June 3, 2023. Subsequently, the margin recovers modestly to 4.61% in 2024 but declines again to 1.38% in 2025. These patterns suggest variability in operating efficiency and cost management, with the period around June 2023 hinting at increased operating pressure or expenses.
Pretax margins follow a similar trajectory, starting negative at -0.22% in 2022, improving to positive 1.26% in 2023, and reaching 0.58% on June 3, 2023. The margin then increases significantly to 2.75% in 2024, indicating better pre-tax profitability, before falling back into negative territory at -0.60% in 2025, signaling a period of decline or increased tax or extraordinary expenses.
Net profit margins reflect the ultimate profitability after all expenses. These margins move from a negative -0.50% in 2022 to positive 1.03% in 2023 and 0.52% on June 3, 2023. Afterward, net margins improve to 2.27% in 2024 but revert to a negative -1.01% in 2025, which could be driven by increased expenses, costs, or other adverse factors impacting bottom-line profitability.
Overall, MillerKnoll Inc. has experienced considerable fluctuations across profitability ratios, with periods of improvement followed by notable declines. The data suggests that while there have been phases of enhanced profit margins—particularly around 2024—the company faced challenges that resulted in negative margins in 2022 and 2025. This pattern underscores a need for ongoing attention to cost control, operational efficiency, and strategic initiatives to stabilize and enhance profitability.
Return on investment
| May 31, 2025 | May 31, 2024 | Jun 3, 2023 | May 31, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | — | 4.13% | 2.86% | 2.86% | 4.42% |
| Return on assets (ROA) | — | 2.04% | 0.98% | 0.98% | -0.44% |
| Return on total capital | — | 12.70% | 4.31% | 8.54% | 2.05% |
| Return on equity (ROE) | — | 5.94% | 2.94% | 2.94% | -1.38% |
The analysis of MillerKnoll Inc.'s profitability ratios over the specified periods reveals several noteworthy trends. The Operating Return on Assets (Operating ROA) experienced a decline from 4.42% on May 31, 2022, to 2.86% on May 31, 2023, remaining steady through June 3, 2023, before rebounding to 4.13% by May 31, 2024. This fluctuation indicates a moderation and subsequent recovery in operating efficiency relative to the asset base.
In contrast, the overall Return on Assets (ROA) showed a negative value of -0.44% on May 31, 2022, shifting to a positive 0.98% by May 31, 2023, and maintaining this level through June 3, 2023, before increasing to 2.04% on May 31, 2024. This trend suggests an improvement in the company's ability to generate net income from its assets over time.
The Return on Total Capital notably increased from 2.05% on May 31, 2022, to 8.54% on the same date in 2023, then decreased to 4.31% as of June 3, 2023, before substantially rising to 12.70% on May 31, 2024. This pattern indicates periods of varying efficiency in generating returns from the combined sources of debt and equity capital, with a significant rebound observed in the latest fiscal period.
Similarly, the Return on Equity (ROE) transitioned from a negative -1.38% in 2022 to a positive 2.94% in 2023, maintaining this level through June 3, 2023, and then increasing to 5.94% by May 31, 2024. The shift from negative to positive ROE reflects an improved profitability attributable to shareholders, aligning with the upward movement seen in other profitability measures.
Overall, MillerKnoll Inc. demonstrated a recovery in profitability metrics after a period of underperformance in 2022. The increase in ROA, ROE, and return on total capital by May 31, 2024, points towards enhanced operational efficiency and better utilization of assets and capital base in the latest fiscal year. However, the fluctuations also signal periods of volatility that merit further analysis to understand underlying factors influencing these profitability dynamics.