MillerKnoll Inc (MLKN)

The provided data delineates the cash conversion cycle (CCC) for MillerKnoll Inc over a series of fiscal dates, illustrating notable fluctuations during the period from May 31, 2022, through May 31, 2025.

On May 31, 2022, the CCC was approximately 67.91 days, indicating that it took nearly 68 days for the company to convert its investments in inventory and receivables into cash, factoring in the duration of its payables. This value suggests a relatively extended period for cash liquidity realization from operational cycles at that time.

By May 31, 2023, the CCC had decreased to approximately 62.39 days, a reduction of about five and a half days. This decline points to an improvement in the company's operational efficiency, potentially through shorter collection periods or better inventory management, resulting in a faster cash realization cycle.

A significant change is observed shortly thereafter on June 3, 2023, when the CCC sharply declined to approximately 36.56 days. Such a pronounced reduction suggests a major enhancement in operational efficiency, which could be attributed to strategic measures such as optimized inventory turnover, accelerated receivables collection, or renegotiated credit terms extending payable durations.

At the fiscal year ending May 31, 2024, the CCC increased again to roughly 64.18 days, reverting to a level comparable to the cycle observed in 2022. This indicates that the company’s cash conversion efficiency faced some setbacks or operational changes that elongated the cycle duration back toward the earlier levels.

Finally, for the period ending on May 31, 2025, the CCC is recorded as 0.00 days. This anomalous figure could result from a variety of factors such as reporting nuances, changes in accounting policies, or exceptional operational circumstances. Under typical circumstances, a zero-day CCC is impractical and may indicate that the metric was not computed or reported for this period in the conventional manner.

In summary, MillerKnoll Inc's cash conversion cycle has demonstrated variability over the observed periods, with periods of improvement particularly evident in June 2023. The cyclical pattern suggests ongoing operational adjustments and strategic developments affecting the speed at which the company converts its investments into cash. The significant fluctuations highlight the importance of continuous monitoring to understand underlying operational efficiencies and working capital management effectiveness.