MillerKnoll Inc (MLKN)
Days of inventory on hand (DOH)
| Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.09 | 6.53 | 9.55 | 12.52 | 12.51 | |
| DOH | days | 45.13 | 55.90 | 38.21 | 29.15 | 29.17 |
June 3, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.09
= 45.13
Based on the provided data, MillerKnoll Inc's days of inventory on hand (DOH) has fluctuated over the past five years. In June 2023, the company reported a DOH of 66.95 days, which represents the average number of days its inventory is held before being sold. This is lower than the 82.66 days reported in May 2022 and higher than the 51.43 days reported in May 2021. The trend indicates an increase in the time it takes to sell inventory compared to the previous year. However, when compared to May 2020 and June 2019, the DOH has increased significantly, suggesting a potential slowdown in inventory turnover. A higher DOH can tie up capital and increase carrying costs, which may impact the company's overall liquidity and efficiency. Further analysis of inventory management practices would provide insights into the reasons behind these fluctuations and potential areas for improvement.