MillerKnoll Inc (MLKN)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.90 | 8.34 | 8.43 | 8.28 | 8.08 | 7.41 | 6.87 | 6.53 | 6.53 | 6.53 | 6.10 | 5.57 | 9.55 | 8.53 | 9.39 | 9.91 | 9.76 | 11.93 | 12.73 | 12.89 | |
| DOH | days | 46.18 | 43.78 | 43.30 | 44.10 | 45.16 | 49.28 | 53.15 | 55.87 | 55.90 | 55.88 | 59.87 | 65.48 | 38.21 | 42.78 | 38.86 | 36.82 | 37.41 | 30.59 | 28.66 | 28.31 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.90
= 46.18
Days of Inventory on Hand (DOH) is a measure used to assess how efficiently a company manages its inventory. A lower DOH indicates that the company is able to sell its inventory quickly, reducing the risk of obsolescence and holding costs. On the other hand, a higher DOH suggests that the company may be holding excess or slow-moving inventory, tying up working capital.
Analyzing the historical trend of MillerKnoll Inc's DOH over the past several reporting periods, we can observe fluctuations in the number of days it takes for the company to sell its inventory.
From Nov 30, 2019, to Mar 4, 2023, the DOH ranged from 28.31 days to 49.28 days, showing some variability in inventory management efficiency. Notably, the DOH increased from 28.31 days on Nov 30, 2019, to 49.28 days on Mar 4, 2023, indicating a prolonged time to sell inventory during this period.
However, from Mar 4, 2023, to Aug 31, 2024, MillerKnoll Inc managed to decrease its DOH steadily from 49.28 days to 46.18 days, suggesting an improvement in inventory turnover efficiency. This trend towards a lower DOH is generally positive as it signifies a shorter time duration for converting inventory into sales.
Overall, a decreasing trend in DOH is favorable for MillerKnoll Inc as it indicates better inventory management practices, potentially leading to improved liquidity, lower holding costs, and higher profitability. Further monitoring of DOH and its impact on the company's operations and financial performance will be essential for assessing its ongoing efficiency in inventory management.