MillerKnoll Inc (MLKN)
Working capital turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Mar 4, 2023 | Feb 28, 2023 | Dec 3, 2022 | Nov 30, 2022 | Sep 3, 2022 | Aug 31, 2022 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,669,900 | 3,597,000 | 3,574,700 | 3,476,600 | 3,544,800 | 3,605,400 | 3,650,000 | 3,695,400 | 7,789,600 | 7,796,800 | 7,863,900 | 7,930,900 | 3,955,600 | 4,065,800 | 4,162,300 | 4,256,400 | 4,308,300 | 4,341,900 | 4,309,300 | 4,249,800 |
| Total current assets | US$ in thousands | 1,108,700 | 1,140,600 | 1,125,800 | 1,071,800 | 1,069,600 | 1,083,400 | 1,083,400 | 1,114,300 | 1,114,300 | 1,097,700 | 1,097,700 | 1,176,200 | 1,176,200 | 1,276,100 | 1,276,100 | 1,309,900 | 1,309,900 | 1,331,200 | 1,331,200 | 1,317,900 |
| Total current liabilities | US$ in thousands | 703,800 | 683,100 | 703,700 | 675,700 | 697,700 | 680,500 | 680,500 | 713,800 | 713,800 | 704,500 | 704,500 | 702,800 | 702,800 | 733,200 | 733,200 | 773,200 | 773,200 | 773,000 | 773,000 | 877,400 |
| Working capital turnover | 9.06 | 7.86 | 8.47 | 8.78 | 9.53 | 8.95 | 9.06 | 9.23 | 19.45 | 19.83 | 20.00 | 16.75 | 8.36 | 7.49 | 7.67 | 7.93 | 8.03 | 7.78 | 7.72 | 9.65 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,669,900K ÷ ($1,108,700K – $703,800K)
= 9.06
The analysis of MillerKnoll Inc.’s working capital turnover ratios over the specified periods reveals notable fluctuations indicative of the company's operational liquidity and efficiency in managing its working capital relative to sales.
From May 31, 2022, to August 31, 2022, the ratio declined from 9.65 to 7.72, suggesting a decrease in the efficiency with which the company utilized its working capital in generating sales. This downward trend continued slightly into September 3, 2022, reaching 7.78, then experienced a marginal increase to 8.03 by November 30, 2022, followed by a slight decline to 7.93 by December 3, 2022, indicating relative stability with minor fluctuations at this stage.
Entering 2023, the ratio persisted at similar levels, with minor decreases to 7.67 on February 28 and 7.49 on March 4, 2023. These figures suggest a period of steady but relatively lower turnover, potentially reflecting tighter working capital management or changes in sales efficiency.
A significant shift is observed starting May 31, 2023, when the ratio increased to 8.36, continuing a sharp upward trajectory that culminated on June 3, 2023, at 16.75. This surge indicates a substantial improvement in the efficiency of working capital utilization or a notable increase in sales relative to working capital during this period.
The upward trend peaked with ratios reaching 20.00 on August 31, 2023, and remaining high through September 2, 2023 (19.83) and November 30, 2023 (19.45). Such elevated ratios imply a very high efficiency in working capital utilization, possibly driven by strong sales performance, optimized inventory management, or effective receivable collection processes.
However, a sharp decline occurred by December 2, 2023, when the ratio dropped to 9.23, and subsequent periods maintained ratios below the earlier peak levels, with values around 9.06 in February 2024 and 8.95 in March 2024. This decline suggests a normalization or deterioration in the efficiency of working capital management, potentially due to increased working capital levels without proportional sales growth or changing operational conditions.
In the most recent periods, the ratios have stabilized around 9, with May 31, 2024, at 9.53, and slight declines thereafter, reaching 8.78 on August 31, 2024, and around 8.47 to 7.86 in early 2025. These levels reflect a relatively moderate cycle of working capital utilization consistency.
Overall, MillerKnoll Inc. exhibited periods of both significant efficiency improvements and normalization, with the most notable peak in working capital turnover occurring mid-2023, followed by a substantial correction. The fluctuations indicate sensitivity to operational changes, market conditions, or internal management strategies, emphasizing the importance of monitoring such ratios for insights into the company's liquidity management and operational effectiveness over time.