MillerKnoll Inc (MLKN)

Short-term

Turnover ratios

MillerKnoll Inc's inventory turnover ratio has shown a generally increasing trend over the past few years, ranging between 5.13 and 6.77. This indicates that the company is efficiently managing its inventory and has been able to sell its inventory multiple times within a given period.

The receivables turnover ratio fluctuates significantly, with some periods showing no data available. However, when data is present, the ratio ranges from 10.72 to 24.13, indicating that the company efficiently collects on its receivables during those periods.

The payables turnover ratio also displays variations, with some periods missing data. When available, the ratio ranges from 9.55 to 12.43, suggesting that the company effectively manages its accounts payable by paying its suppliers in a timely manner.

The working capital turnover ratio has shown a fluctuating trend, with values ranging from 7.49 to 20.00. This ratio reflects how efficiently the company generates revenue using its working capital. The significant fluctuations may indicate changes in the company's operational efficiency over time.

Overall, the analysis of MillerKnoll Inc's activity ratios suggests that the company has been effectively managing its inventory, receivables, payables, and working capital to support its operational activities and financial performance.

---

Average number of days

Based on the provided data for MillerKnoll Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The average DOH over the period from May 28, 2022, to February 28, 2025, was approximately 60.76 days.
- The trend shows some fluctuations but generally a decreasing pattern from around 63 days in the beginning to about 56-57 days towards the end of the period.
- This indicates that the company has been improving its inventory management efficiency, holding less inventory on hand to meet demand.

2. Days of Sales Outstanding (DSO):
- From the available data, DSO was only reported for a few dates, with values around 16-34 days.
- There are missing values for most periods, making it challenging to draw a comprehensive trend analysis.
- However, the DSO values suggest that the company typically collects its receivables within a reasonable time frame.

3. Number of Days of Payables:
- The average payables period for MillerKnoll Inc during the period was approximately 30.48 days.
- The company seemed to maintain a relatively consistent payment period, hovering around 30 days throughout the reported period.
- This indicates that the company has been managing its payables efficiently, neither delaying nor accelerating payments significantly.

In summary, MillerKnoll Inc has shown improvements in inventory management efficiency, reasonable collection of receivables within reported periods, and consistent management of payables. The company's ability to maintain a balance between these activity ratios suggests a healthy operational cycle and effective working capital management.

---

Long-term

The long-term activity ratios of MillerKnoll Inc provide insights into the efficiency of the company in utilizing its fixed assets and total assets to generate sales revenue.

1. Fixed Asset Turnover: The fixed asset turnover ratio indicates how efficiently the company is using its fixed assets to generate revenue. A higher ratio signifies better utilization of fixed assets. From the data provided, we observe fluctuations in the fixed asset turnover ratio over the years. The ratio ranged from as low as 4.41 to as high as 14.79 during different periods. This variability suggests potential changes in the company's asset utilization efficiency over time.

2. Total Asset Turnover: The total asset turnover ratio reflects the company's ability to generate sales in relation to its total assets. A higher total asset turnover ratio indicates that the company is efficiently generating revenue using its total asset base. In this case, the total asset turnover ratio fluctuated between 0.87 and 1.88 throughout the reporting periods. The increase in the ratio from 0.93 to 1.88 between May 31, 2023, and September 2, 2023, suggests a significant improvement in asset utilization efficiency during that time frame.

Overall, the analysis of MillerKnoll Inc's long-term activity ratios indicates fluctuations in the efficiency of asset utilization over the years, highlighting the importance of continuously monitoring and optimizing the company's asset management strategies to improve operational performance.