MillerKnoll Inc (MLKN)
Return on total capital
| Nov 30, 2024 | Aug 31, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Mar 4, 2023 | Dec 3, 2022 | Sep 3, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 185,500 | 164,000 | 162,000 | 137,000 | 112,800 | 120,600 | 162,700 | 170,900 | 137,100 | 21,800 | -23,100 | 6,800 | 73,100 | 236,700 | 26,600 | 19,900 | 43,400 | 9,800 | 271,000 | 269,100 |
| Long-term debt | US$ in thousands | 1,402,800 | 1,381,600 | — | — | — | 1,365,100 | 1,415,100 | 1,434,800 | 1,484,400 | 1,379,200 | 1,384,900 | 1,340,700 | 1,298,400 | 274,900 | 274,900 | 274,900 | 274,900 | 539,900 | 275,000 | 275,000 |
| Total stockholders’ equity | US$ in thousands | 1,310,800 | 1,332,500 | 1,390,900 | 1,420,600 | 1,422,300 | 1,432,600 | 1,433,900 | 1,434,300 | 1,374,800 | 1,427,100 | 1,470,500 | 1,449,200 | 1,486,700 | 860,500 | 909,200 | 854,800 | 803,600 | 652,400 | 908,500 | 844,600 |
| Return on total capital | 6.84% | 6.04% | 11.65% | 9.64% | 7.93% | 4.31% | 5.71% | 5.96% | 4.80% | 0.78% | -0.81% | 0.24% | 2.62% | 20.85% | 2.25% | 1.76% | 4.02% | 0.82% | 22.90% | 24.04% |
November 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $185,500K ÷ ($1,402,800K + $1,310,800K)
= 6.84%
MillerKnoll Inc's return on total capital has fluctuated over the past few years. As of Nov 30, 2024, the company's return on total capital stands at 6.84%, showing a slight increase compared to the previous period.
The trend over the past five quarters indicates some variability in the company's performance, with returns ranging from as low as 4.31% on Jun 3, 2023, to as high as 11.65% on Mar 2, 2024. This variability may be indicative of changes in the company's capital structure, profitability, or investment efficiency over time.
It is worth noting that there has been a significant decline in the return on total capital compared to the more favorable levels seen in 2020, where returns were well above 20%. This significant drop may warrant further investigation into the factors influencing the company's return on total capital during the recent periods.
Overall, monitoring the return on total capital is crucial for assessing MillerKnoll Inc's ability to generate profits from its capital investments and optimize its capital allocation strategies for sustainable growth and value creation.