MillerKnoll Inc (MLKN)
Return on total capital
| 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 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 228,100 |
| Long-term debt | US$ in thousands | 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 | 275,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 745,200 |
| Return on total capital | 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% | 22.36% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $164,000K ÷ ($1,381,600K + $1,332,500K)
= 6.04%
MillerKnoll Inc's return on total capital has shown some fluctuations over the past few quarters. The ratio ranged from a low of -0.81% in February 2022 to a high of 24.04% in February 2020.
The trend indicates that the company's ability to generate profits in relation to its total capital has been inconsistent. The returns have not shown a clear upward or downward trajectory, suggesting potential instability or varying performance drivers within the company.
It is worth noting that the return on total capital significantly improved from negative levels to positive levels in the later quarters of the data, indicating a potential turnaround in profitability. However, the company should continue to monitor and work on improving its efficiency in utilizing capital to generate returns for its investors.