MillerKnoll Inc (MLKN)
Working capital 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 |
| Total current assets | US$ in thousands | 1,176,200 | 1,317,900 | 906,500 | 917,100 | 661,300 |
| Total current liabilities | US$ in thousands | 702,800 | 877,400 | 476,500 | 470,200 | 446,100 |
| Working capital turnover | 17.11 | 17.80 | 11.43 | 11.10 | 23.80 |
June 3, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,100,200K ÷ ($1,176,200K – $702,800K)
= 17.11
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively using its working capital to support its sales activities.
Interpreting the working capital turnover data for MillerKnoll Inc from 2019 to 2023, we observe the following trends:
1. Jun 3, 2023: The working capital turnover ratio stands at 8.63, showing a slight decrease from the previous year. This implies that for every dollar of working capital, MillerKnoll Inc generates $8.63 in sales, indicating a slightly lower efficiency in utilizing its working capital compared to the previous year.
2. May 28, 2022: The working capital turnover ratio was 8.96, indicating a higher efficiency in utilizing working capital compared to the previous year. This suggests that the company was able to generate more sales revenue for every dollar of working capital during this period.
3. May 29, 2021: The working capital turnover ratio was 6.31, representing a decrease from the previous year. This indicates a decrease in the efficiency of working capital utilization in generating sales revenue during this period.
4. May 30, 2020: The working capital turnover ratio was 6.16, showing a similar trend of decreased efficiency compared to the previous year. This suggests that the company's ability to generate sales revenue from its working capital decreased during this period.
5. Jun 1, 2019: The working capital turnover ratio was significantly higher at 11.93, indicating a high level of efficiency in utilizing working capital to generate sales.
In summary, the working capital turnover ratio for MillerKnoll Inc fluctuated over the years, reflecting varying levels of efficiency in utilizing its working capital to generate sales revenue. The company experienced a notable decrease in efficiency in 2021 and 2020 compared to 2019, followed by a slight improvement in 2022, and a decrease again in 2023. This trend suggests the need for further analysis of the company's working capital management and sales generation strategies to identify factors contributing to these fluctuations in efficiency.