MillerKnoll Inc (MLKN)

Short-term

Turnover ratios

MillerKnoll Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

The inventory turnover ratio has been relatively stable over the periods, ranging from 5.57 to 12.89 times. This indicates that the company is efficiently managing its inventory levels, with higher turnover ratios generally indicating better sales performance.

The receivables turnover ratio shows fluctuations but generally demonstrates a pattern of improving efficiency in collecting receivables over the periods. The ratio ranges from 8.46 to 24.56 times, indicating that MillerKnoll is efficient in collecting payments from its customers.

In terms of payables turnover, the company shows a consistent trend of paying its bills efficiently, with ratios ranging from 7.60 to 15.54 times. A higher payables turnover ratio suggests that the company is effectively managing its accounts payable.

The working capital turnover ratio reflects the company's ability to generate sales revenue from its working capital. The ratios vary significantly from 5.54 to 20.53 times, indicating fluctuations in the efficiency of utilizing working capital to generate revenue.

Overall, MillerKnoll Inc demonstrates a relatively efficient operation in managing its inventory, receivables, and payables, which is crucial for maintaining healthy cash flow and operational efficiency. However, the fluctuation in working capital turnover may require further analysis to ensure optimal utilization of resources.

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Average number of days

Days of inventory on hand (DOH) for MillerKnoll Inc has shown some fluctuations over the past two years, ranging from a low of 28.31 days to a high of 65.48 days. This indicates variability in how efficiently the company manages its inventory levels. Generally, a lower number of days of inventory on hand is preferable as it suggests quicker turnover and less money tied up in inventory.

Days of sales outstanding (DSO) have also been inconsistent, ranging from 14.86 days to 43.15 days. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is positive for cash flow management. However, the fluctuations suggest potential challenges in maintaining consistent collections.

The number of days of payables has ranged from 23.49 days to 48.04 days, indicating variability in the company's payment practices to its suppliers. A longer period of payables can be beneficial as it allows the company to hold onto cash longer, but it could also strain relationships with suppliers if payment terms are extended too far.

Overall, MillerKnoll Inc's activity ratios highlight the importance of closely monitoring and managing inventory, sales collection, and payment practices to ensure optimal working capital management and cash flow efficiency.

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Long-term

MillerKnoll Inc's long-term activity ratios illustrate how efficiently the company utilizes its long-term assets to generate revenue. The fixed asset turnover ratio indicates the company's ability to generate sales from its fixed assets. From Aug 31, 2019, to Aug 31, 2024, the ratio fluctuated between 4.25 and 15.22, with an average of approximately 8.22. This indicates that, on average, MillerKnoll Inc generates around $8.22 in sales for every $1 invested in fixed assets.

On the other hand, the total asset turnover ratio measures how efficiently the company utilizes all its assets to generate sales. Over the same period, the ratio ranged from 0.58 to 1.88, with an average of approximately 1.17. This suggests that, on average, MillerKnoll Inc generates approximately $1.17 in sales for every $1 of total assets.

Overall, these ratios indicate that MillerKnoll Inc has been efficient in utilizing both its fixed and total assets to generate sales, with fluctuations observed over the period but demonstrating a general trend of stable performance.