MillerKnoll Inc (MLKN)
Return on total capital
| May 31, 2024 | Jun 3, 2023 | May 31, 2023 | May 31, 2022 | May 28, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 175,900 | 120,600 | 122,300 | 29,200 | 21,800 |
| Long-term debt | US$ in thousands | — | 1,365,100 | — | — | 1,379,200 |
| Total stockholders’ equity | US$ in thousands | 1,385,100 | 1,432,600 | 1,432,600 | 1,427,100 | 1,427,100 |
| Return on total capital | 12.70% | 4.31% | 8.54% | 2.05% | 0.78% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $175,900K ÷ ($—K + $1,385,100K)
= 12.70%
MillerKnoll Inc's return on total capital has shown a fluctuating trend over the years, ranging from 0.78% to 12.70%. The return on total capital was relatively low at 0.78% on May 28, 2022, indicating that the company may not have efficiently utilized its total capital to generate profits at that time. However, the return on total capital improved significantly to 12.70% on May 31, 2024, showing a substantial increase in profitability relative to the capital employed.
The data reflects variability in the company's performance in terms of generating returns from its total capital. It is important for management to closely monitor and analyze the factors driving these fluctuations to ensure sustainable and consistent profitability in the long run. Further investigation into the company's operations, investment decisions, and financial strategies may provide insights into the changing performance trends observed in the return on total capital.