MillerKnoll Inc (MLKN)
Return on assets (ROA)
| Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 42,100 | -27,100 | 174,600 | -8,700 | 160,500 |
| Total assets | US$ in thousands | 4,274,800 | 4,514,000 | 2,076,800 | 2,053,900 | 1,569,300 |
| ROA | 0.98% | -0.60% | 8.41% | -0.42% | 10.23% |
June 3, 2023 calculation
ROA = Net income ÷ Total assets
= $42,100K ÷ $4,274,800K
= 0.98%
To analyze the return on assets (ROA) of MillerKnoll Inc, we use the formula: ROA = Net Income / Average Total Assets. The ROA indicates the profitability of the company relative to its total assets.
In 2023, the ROA was 0.98%, a positive indicator that the company generated a profit of 0.98% on its average total assets during the year. This represents an improvement from the negative ROA of -0.60% in 2022. The negative ROA in 2022 suggests that the company's net income may have been insufficient compared to its average total assets. This improvement in 2023 likely reflects better profitability or more efficient asset utilization.
The ROA was notably higher at 8.40% in 2021 and 10.23% in 2019, indicating that the company was able to generate greater profits relative to its assets in those years. In 2020, the ROA returned to a negative figure at -0.44%, signaling a decrease in profitability relative to its total assets.
Overall, the ROA has exhibited variability over the past five years, with positive and negative figures observed. This inconsistency suggests fluctuations in the company's ability to generate profits in relation to its total assets. Further analysis of the company's financial performance and asset management practices may be necessary to understand the factors contributing to the fluctuations in ROA.