MillerKnoll Inc (MLKN)

The current ratio of MillerKnoll Inc has been relatively stable over the past few years, ranging from 1.50 to 1.67. This indicates that the company has enough current assets to cover its current liabilities.

However, the quick ratio, which measures the company's ability to pay off its current liabilities without relying on inventory, has been fluctuating significantly. It was particularly low at 0.27 in May 2022 but improved to 0.84 in June 2023 before dropping to 0.33 by May 2024. This may suggest varying levels of liquidity and ability to meet short-term obligations.

The cash ratio, a more stringent measure of liquidity, has also shown slight improvements over the years, ranging from 0.27 to 0.33. This ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents.

Overall, while the current ratio of MillerKnoll Inc appears satisfactory, the fluctuating quick ratio and the moderate cash ratio suggest that the company should continue to monitor and manage its liquidity position effectively to ensure it can meet its short-term obligations consistently.

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Additional liquidity measure

The cash conversion cycle for MillerKnoll Inc has shown some fluctuation over the years. On May 28, 2022, the company's cash conversion cycle was 39.83 days, indicating a relatively efficient management of cash flow. However, by May 31, 2022, the cycle increased significantly to 82.66 days, suggesting a delay in converting investment in inventory into cash.

The trend continued to improve as of May 31, 2023, with the cash conversion cycle decreasing to 66.95 days. This reduction indicates a potential improvement in inventory management and the collection of accounts receivable. By June 3, 2023, the cycle had further improved to 36.56 days, reflecting a more efficient use of cash and quicker conversion of assets into cash.

However, on May 31, 2024, the cash conversion cycle increased to 70.82 days, indicating a potential slowdown in cash collection or inventory turnover. Overall, while there have been fluctuations in MillerKnoll Inc's cash conversion cycle, it is essential for the company to focus on maintaining an optimal balance between managing inventory efficiently and collecting cash timely to improve its overall cash flow and operational efficiency.