Millerknoll(Mlkn) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for MLKN compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Equity (ROE)
Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.
Interpretation:
• In '2021', MLKN's return on equity was 20.3%, measuring profitability for shareholders. Industry average for Office Equipment/Supplies/Services in '2021' stood at 3.6%.
• In '2022', MLKN's return on equity was -2.4%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Office Equipment/Supplies/Services in '2022' stood at 13.5%. Industry average increased by 9.8% compared to previous year.
• In '2023', MLKN's return on equity was 2.9%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2023' stood at 24.2%. Industry average increased by 10.8% compared to previous year.
• In '2024', MLKN's return on equity was 5.8%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2024' stood at 27.0%. Industry average increased by 2.8% compared to previous year.
Overall, MLKN's return on equity has been volatile but showed a downward trend over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.