MillerKnoll Inc (MLKN)

Short-term

Turnover ratios

MillerKnoll Inc's Inventory turnover ratios have fluctuated over the years, ranging from 4.42 to 8.09, with the highest turnover rate achieved on June 3, 2023. This indicates that the company is efficiently managing its inventory levels and converting its inventory into sales. The overall trend suggests an improvement in inventory management efficiency, with the exception of May 31, 2022, when the ratio was relatively lower.

In terms of Receivables turnover, the company reported turnover ratios of 20.59 and 22.28 on May 28, 2022, and June 3, 2023, respectively. However, data for May 31, 2022, May 31, 2023, and May 31, 2024, are missing, making it difficult to assess the trend over the years. The high turnover ratios indicate that MillerKnoll Inc is collecting its accounts receivable relatively quickly, which is a positive sign of efficient credit management.

Similarly, the Payables turnover ratios for MillerKnoll Inc are missing for the years May 31, 2022, May 31, 2023, and May 31, 2024. However, on June 3, 2023, the company reported a payables turnover ratio of 14.63, indicating that it is paying its suppliers at a relatively faster rate. A higher payables turnover ratio suggests that the company is managing its payables effectively, potentially taking advantage of trade credit terms.

Lastly, the Working capital turnover ratios for MillerKnoll Inc ranged from 8.63 to 17.80 over the years, with a notable increase to 17.11 on June 3, 2023. This metric reflects how effectively the company is utilizing its working capital to generate sales. The improvement in the working capital turnover ratio indicates that MillerKnoll Inc is becoming more efficient in utilizing its resources to drive revenue growth.

In conclusion, while the company has shown improvement in inventory turnover and working capital turnover ratios, missing data for receivables and payables turnover ratios limits the comprehensive analysis of MillerKnoll Inc's activity ratios.

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Average number of days

The activity ratios of MillerKnoll Inc show fluctuations in the efficiency of managing its operations over the years.

1. Days of Inventory on Hand (DOH): The trend in the Days of Inventory on Hand indicate that MillerKnoll Inc held inventory for an average of 55.90 days as of May 28, 2022. This value increased significantly to 82.66 days by May 31, 2022, implying a potential issue with inventory management efficiency. However, there was an improvement as the DOH decreased to 66.95 days by May 31, 2023, indicating better inventory turnover. There was a further decrease to 45.13 days by June 3, 2023, suggesting even better inventory management. However, by May 31, 2024, the DOH increased to 70.82 days, indicating a potential increase in excess inventory or slower sales.

2. Days of Sales Outstanding (DSO): The DSO ratio provides insight into how long it takes for MillerKnoll Inc to collect its accounts receivable. As of May 28, 2022, the company took 17.73 days on average to collect its sales revenues from customers. Unfortunately, the data for May 31, 2022, May 31, 2023, and May 31, 2024 is missing, which limits a comprehensive analysis of the trend in DSO. However, as of June 3, 2023, the DSO was recorded at 16.38 days, indicating a potential improvement in the company's accounts receivable collection efficiency.

3. Number of Days of Payables: The number of days of payables ratio reflects the average number of days MillerKnoll Inc takes to pay its suppliers. As of May 28, 2022, the company took 33.80 days on average to pay its payables. Unfortunately, data for the other years is missing, hindering a complete trend analysis. However, by June 3, 2023, the number of days of payables decreased to 24.96 days, suggesting a potential improvement in managing vendor payments effectively.

In conclusion, while there were fluctuations in the activity ratios of MillerKnoll Inc over the years, the company showed signs of improving its inventory management and accounts receivable collection efficiency. However, the missing data for DSO and payables for certain years limits a comprehensive analysis of the entire period.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.

- In May 2022, MillerKnoll Inc had a Fixed Asset Turnover ratio of 13.49, indicating that for every dollar invested in fixed assets, the company generated $13.49 in sales.
- By May 2023, the ratio decreased to 7.62, suggesting a lower efficiency in utilizing fixed assets to generate revenue.
- The ratio saw a significant increase by June 2023, reaching 15.10, indicating improved efficiency in utilizing fixed assets to generate sales.
- Lastly, for May 2024, there is no data available for Fixed Asset Turnover.

On the other hand, the Total Asset Turnover ratio measures how effectively a company is using its total assets to generate revenue.

- In May 2022, the Total Asset Turnover ratio was 1.74, suggesting that for every dollar invested in total assets, the company generated $1.74 in revenue.
- The ratio decreased to 0.88 by May 31, 2022, indicating a decline in the efficiency of using total assets to generate sales.
- By June 3, 2023, the Total Asset Turnover ratio improved significantly to 1.89, showing a better utilization of total assets to generate revenue.
- For May 31, 2024, the ratio is recorded at 0.90, which is slightly lower compared to June 3, 2023, indicating a decrease in the efficiency of total asset utilization for revenue generation.

Overall, the analysis indicates fluctuations in both Fixed Asset Turnover and Total Asset Turnover ratios, with some periods showing improved efficiency in asset utilization for revenue generation, while others showing a decline. Further investigation into the company's operational and strategic decisions may be required to understand the underlying reasons for these fluctuations.