MillerKnoll Inc (MLKN)
Return on total capital
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Mar 4, 2023 | Feb 28, 2023 | Dec 3, 2022 | Nov 30, 2022 | Sep 3, 2022 | Aug 31, 2022 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 50,500 | 69,700 | 196,400 | 183,200 | 227,800 | 229,000 | 225,000 | 213,200 | 163,600 | 145,100 | 124,100 | 135,100 | 160,500 | 167,400 | 196,200 | 200,800 | 238,000 | 235,800 | 223,300 | 195,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 1,365,100 | — | 1,415,100 | — | 1,434,800 | — | 1,484,400 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,335,100 | 1,254,100 | 1,310,800 | 1,332,500 | 1,385,100 | 1,390,900 | 1,390,900 | 1,420,600 | 1,420,600 | 1,422,300 | 1,422,300 | 1,432,600 | 1,432,600 | 1,433,900 | 1,433,900 | 1,434,300 | 1,434,300 | 1,374,800 | 1,374,800 | 1,427,100 |
| Return on total capital | 3.78% | 5.56% | 14.98% | 13.75% | 16.45% | 16.46% | 16.18% | 15.01% | 11.52% | 10.20% | 8.73% | 4.83% | 11.20% | 5.88% | 13.68% | 7.00% | 16.59% | 8.25% | 16.24% | 13.71% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $50,500K ÷ ($—K + $1,335,100K)
= 3.78%
The analysis of MillerKnoll Inc’s return on total capital (ROTC) over the specified period reveals notable fluctuations and trends. The ROTC exhibits significant variability, with the earliest data point on May 31, 2022, at 13.71%, reaching a peak of 16.59% on November 30, 2022. Conversely, the lowest point observed is 3.78% on May 31, 2025.
Throughout the period, there are multiple instances of peaks and troughs, indicating inconsistent returns on total capital. After peaking at 16.59% in late November 2022, the ROTC declined sharply to 7.00% by December 3, 2022, reflecting a period of diminished efficiency in capital utilization. Conversely, there was a recovery to 13.68% by February 28, 2023, suggesting some rebound in operational performance.
Subsequently, the ROTC experienced a downward trend, reaching as low as 4.83% on June 3, 2023, and further decreasing to 4.83% in early June 2023. However, from August 31, 2023, onward, there was a gradual recovery with the ROTC ascending to 11.52% by November 30, 2023, and further increasing to 16.45% on May 31, 2024. The value then slightly decreased to 13.75% by August 31, 2024, before rising again to nearly 15% levels in late 2024.
More recently, in 2025, the ROTC exhibits a marked decline, reaching 5.56% on February 29, 2024, and dropping further to 3.78% by May 31, 2025. This decline indicates a deterioration in the company’s ability to generate returns relative to its total capital base.
Overall, the data reflect periods of volatility with cyclical recovery and decline phases, indicating inconsistency in MillerKnoll Inc’s efficiency in generating returns from its total capital base over the analyzed timeframe. The fluctuations suggest that external or internal factors may have influenced operational effectiveness and capital management during these periods.