MillerKnoll Inc (MLKN)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,481,800 | 3,646,400 | 3,778,200 | 3,916,100 | 3,939,400 | 3,996,700 | 4,031,800 | 4,021,300 | 3,835,000 | 3,401,900 | 2,944,200 | 2,487,400 | 2,183,700 | 1,714,900 | 1,794,000 | 1,848,900 | 1,925,200 | 2,392,600 | 2,348,200 | 2,336,300 |
| Payables | US$ in thousands | 236,100 | 242,000 | 250,700 | 252,000 | 269,500 | 282,700 | 281,600 | 303,200 | 355,100 | 340,800 | 333,600 | 327,400 | 178,400 | 159,400 | 164,400 | 159,500 | 128,800 | 180,600 | 166,700 | 178,500 |
| Payables turnover | 14.75 | 15.07 | 15.07 | 15.54 | 14.62 | 14.14 | 14.32 | 13.26 | 10.80 | 9.98 | 8.83 | 7.60 | 12.24 | 10.76 | 10.91 | 11.59 | 14.95 | 13.25 | 14.09 | 13.09 |
August 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,481,800K ÷ $236,100K
= 14.75
The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may suggest favorable payment terms or efficient management of working capital.
Analyzing MillerKnoll Inc's payables turnover over the historical periods, we observe fluctuation in the ratio. The payables turnover ratio has ranged from 7.60 to 15.54 over the past 21 periods. In recent periods, the payables turnover ratio has generally increased, indicating that MillerKnoll Inc has been managing its accounts payable more efficiently.
A payables turnover ratio of 14.75 as of August 31, 2024, suggests that MillerKnoll Inc paid its suppliers approximately 14.75 times during the year. This high ratio may reflect a strong relationship with suppliers or a robust cash conversion cycle.
Overall, the trend of increasing payables turnover indicates that MillerKnoll Inc has improved its efficiency in managing its accounts payable, which can positively impact its working capital management and cash flow position. However, it is essential for the company to maintain a balance in supplier relationships to ensure ongoing smooth operations.