MillerKnoll Inc (MLKN)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 11.09 | 24.18 | 22.67 | 24.56 | 22.28 | — | — | — | 10.26 | 9.63 | 8.47 | 8.46 | 11.10 | 10.50 | 10.55 | 10.88 | 12.42 | 10.30 | 10.75 | 10.36 | |
| DSO | days | 32.92 | 15.10 | 16.10 | 14.86 | 16.38 | — | — | — | 35.58 | 37.89 | 43.10 | 43.15 | 32.88 | 34.75 | 34.60 | 33.56 | 29.39 | 35.45 | 33.96 | 35.25 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.09
= 32.92
Days Sales Outstanding (DSO) is a crucial metric that measures the average number of days a company takes to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it improves cash flow and liquidity.
Analyzing the DSO trend for MillerKnoll Inc from August 2019 to August 2024 reveals fluctuations in its collection efficiency. The DSO has shown some variability over this period, indicating changes in the company's ability to collect receivables promptly.
From August 2019 to September 2021, the DSO ranged between 29.39 days to 43.15 days, showing some inconsistency in the collection process. However, from December 2021 to March 2024, the DSO values improved significantly, dropping to a range of 14.86 days to 16.10 days. This improvement suggests that MillerKnoll Inc became more efficient in collecting payments during this period.
It is essential for the company to sustain this improved performance in managing its receivables effectively in the future. Consistent monitoring of the DSO and implementing strategies to reduce the collection period further can help enhance cash flow and overall financial health of MillerKnoll Inc.