MillerKnoll Inc (MLKN)

Short-term

Turnover ratios

Based on the provided data for MillerKnoll Inc's activity ratios:

1. Inventory Turnover: The company's inventory turnover ratio has been fairly consistent over the years, ranging between 6.10 and 9.55. This indicates that the company is effectively managing its inventory levels, with a higher ratio suggesting faster inventory turnover.

2. Receivables Turnover: MillerKnoll Inc's receivables turnover ratio has shown variability over time, with values ranging from 8.46 to 24.56. A higher ratio indicates that the company is efficient in collecting payments from its customers.

3. Payables Turnover: The payables turnover ratio for the company has also fluctuated, ranging from 7.60 to 15.54. A higher payables turnover ratio suggests that the company is taking less time to pay its suppliers, potentially improving its working capital management.

4. Working Capital Turnover: The working capital turnover ratio has varied significantly, ranging from 5.54 to 20.53. A higher ratio signifies that the company is effectively utilizing its working capital to generate sales revenue.

In summary, MillerKnoll Inc's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the years. Further analysis and comparison with industry benchmarks would provide more insights into the company's operational performance and potential areas for improvement.

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Average number of days

To analyze MillerKnoll Inc's activity ratios, we will focus on the following key metrics:

1. Days of Inventory on Hand (DOH):
- The trend of DOH shows that MillerKnoll Inc has maintained relatively stable inventory levels over the past few years, ranging from around 30 to 60 days.
- A lower DOH indicates faster inventory turnover, suggesting efficient management of inventory. MillerKnoll's DOH has been fluctuating but generally within a reasonable range.
- The latest DOH of 46.46 days as of November 30, 2024, is slightly higher than in previous periods, indicating a potential buildup of inventory that may need to be monitored for potential risks of overstocking.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for MillerKnoll to collect revenue from sales. A lower DSO is desirable as it indicates quicker cash conversion.
- The DSO trend shows variability, with some periods where data is missing (denoted by "— days"). This could indicate issues with data reporting or changes in collection processes.
- Notably, the DSO was relatively low in recent periods, suggesting effective accounts receivable management. The DSO trend should be closely monitored to ensure consistency in collection efficiency.

3. Number of Days of Payables:
- Payables days represent how quickly MillerKnoll pays its suppliers. A longer payment period can indicate better cash flow management but may strain supplier relationships if too prolonged.
- The data shows the company's payables days have been relatively consistent, ranging around 20 to 50 days over the years. A higher number of days indicates a longer credit period taken by MillerKnoll.
- The latest payables days of 26.40 days as of November 30, 2024, suggest that the company is efficiently managing its payables, maintaining a balance between timely payments and preserving cash flow.

In summary, MillerKnoll Inc's activity ratios reflect generally sound working capital management practices, with stable inventory levels, efficient accounts receivable management, and well-managed payables. Monitoring these ratios closely can provide insights into the company's operational efficiency and financial health.

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Long-term

MillerKnoll Inc's fixed asset turnover ratio has shown a fluctuating trend over the past several years, with values ranging from a low of 5.07 to a high of 15.22. This ratio measures the company's ability to generate sales from its fixed assets, and the higher the ratio, the more efficiently the company is utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also shown variability, fluctuating between 0.58 and 1.90. This ratio indicates the company's ability to generate sales from its total assets, including both fixed and current assets. A higher total asset turnover ratio suggests that the company is effectively using its assets to generate sales.

Overall, the trend in both fixed asset turnover and total asset turnover ratios for MillerKnoll Inc indicates some level of efficiency in utilizing assets to generate revenue, although there is room for improvement in maintaining a more consistent performance over time. It would be essential for the company to monitor and potentially enhance its asset management strategies to ensure long-term sustainability and profitability.