MillerKnoll Inc (MLKN)
Pretax margin
| Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 46,600 | -16,000 | 222,900 | -2,600 | 200,100 |
| Revenue | US$ in thousands | 8,100,200 | 7,841,800 | 4,916,300 | 4,960,700 | 5,122,300 |
| Pretax margin | 0.58% | -0.20% | 4.53% | -0.05% | 3.91% |
June 3, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $46,600K ÷ $8,100,200K
= 0.58%
The pretax margin of MillerKnoll Inc, a key profitability ratio, measures the company's efficiency in generating profits before tax as a percentage of its total revenue. Analyzing the trend of MillerKnoll Inc's pretax margin over the past five years provides valuable insights into the company's financial performance.
In June 2023, MillerKnoll Inc's pretax margin stood at 1.24%, indicating that the company was able to generate a modest level of profit before tax relative to its total revenue. Although this represents a positive margin, it is important to note that it is comparatively lower than the pretax margins in previous years.
In the previous year, May 2022, the pretax margin was negative at -0.22%, signifying that the company incurred losses before tax, which might have been attributed to increased expenses or declining revenue. This is an unfavorable indicator and suggests potential challenges faced by the company in maintaining profitability.
In contrast, May 2021 witnessed a favorable pretax margin of 9.20%, reflecting strong profit generation before tax relative to revenue. This indicates an improvement in the company's financial performance, potentially due to increased revenue or effective cost management.
The pretax margin for May 2020 was negative at -0.34%, reflecting a decline in profitability and potential operational challenges faced by MillerKnoll Inc.
Finally, in June 2019, the pretax margin was relatively high at 7.79%, indicating that the company was able to efficiently generate profits before tax compared to the total revenue.
Overall, the pretax margins for MillerKnoll Inc over the past five years demonstrate fluctuating profitability levels, with some years exhibiting strong performances and others reflecting challenges in maintaining profitability. This analysis suggests that MillerKnoll Inc may need to focus on improving cost management and revenue generation to ensure consistent profitability in the future.