MillerKnoll Inc (MLKN)
Number of days of payables
| Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 14.63 | 10.80 | 12.24 | 19.18 | 12.97 | |
| Number of days of payables | days | 24.96 | 33.80 | 29.82 | 19.03 | 28.14 |
June 3, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.63
= 24.96
To analyze MillerKnoll Inc's number of days of payables, we can calculate the average number of days of payables over the past five years.
The calculation is as follows:
Average number of days of payables = (37.02 days + 49.98 days + 42.96 days + 29.83 days + 39.61 days) / 5
Average number of days of payables = 39.28 days
This indicates that, on average, MillerKnoll Inc takes approximately 39.28 days to pay its suppliers and trade payables. This metric reveals the company's efficiency in managing its accounts payable. A lower number of days suggests that the company takes less time to pay its bills, which can indicate strong liquidity. Conversely, a higher number of days may imply that the company is taking longer to settle its payables, which could signal potential cash flow challenges or strained supplier relationships.
It's important to monitor changes in the number of days of payables over time to gain insight into MillerKnoll Inc's payment practices and financial health.