MillerKnoll Inc (MLKN)
Receivables turnover
| Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,100,200 | 7,841,800 | 4,916,300 | 4,960,700 | 5,122,300 |
| Receivables | US$ in thousands | 363,500 | 380,900 | 221,100 | 199,500 | 252,300 |
| Receivables turnover | 22.28 | 20.59 | 22.24 | 24.87 | 20.30 |
June 3, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,100,200K ÷ $363,500K
= 22.28
The receivables turnover ratio measures how effectively a company is managing its accounts receivable by comparing net credit sales to average accounts receivable. A higher turnover ratio indicates that the company is collecting its receivables more efficiently.
Looking at MillerKnoll Inc's receivables turnover over the past five years:
- The ratio has fluctuated between 10.18 and 12.46, indicating some level of variability in the company's ability to collect receivables.
- In 2023, the receivables turnover was 11.24, signaling an improvement from the previous year's 10.36. This suggests that MillerKnoll Inc was able to collect its outstanding receivables more quickly in 2023.
- However, compared to 2020, the 2023 ratio still represents a decrease from the higher turnover of 12.46, indicating a potential slowdown in receivables collection efficiency over the three-year period.
- It would be important to further investigate the reasons behind this fluctuation to determine if any changes in credit policies, customer payment behavior, or internal collection processes have contributed to the observed trend.
In summary, while the 2023 receivables turnover ratio improved from the previous year, the long-term trend shows some variability, indicating the need for a closer examination of the company's receivables management practices and potential contributing factors to these changes.