MillerKnoll Inc (MLKN)
Cash conversion cycle
| May 31, 2024 | Jun 3, 2023 | May 31, 2023 | May 31, 2022 | May 28, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.82 | 45.13 | 66.95 | 82.66 | 55.90 |
| Days of sales outstanding (DSO) | days | — | 16.38 | — | — | 17.73 |
| Number of days of payables | days | — | 24.96 | — | — | 33.80 |
| Cash conversion cycle | days | 70.82 | 36.56 | 66.95 | 82.66 | 39.83 |
May 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.82 + — – —
= 70.82
The cash conversion cycle of MillerKnoll Inc has shown fluctuations over the years based on the provided data. On May 28, 2022, the cash conversion cycle was 39.83 days, indicating a relatively quick conversion of inventory into cash. However, by May 31, 2022, the cycle increased significantly to 82.66 days, suggesting a delay in converting inventory into cash.
The company managed to improve its cash conversion cycle by May 31, 2023, as it decreased to 66.95 days, although it was still higher than the initial period in 2022. Subsequently, by June 3, 2023, the cycle decreased further to 36.56 days, indicating a more efficient process of converting inventory into cash.
By May 31, 2024, the cash conversion cycle increased again to 70.82 days, implying a slower conversion of inventory into cash compared to the previous period. Overall, the fluctuations in the cash conversion cycle suggest variations in the company's efficiency in managing its inventory, payables, and receivables during the specified years. Further analysis and context would be necessary to understand the underlying reasons for these fluctuations and their potential impact on MillerKnoll Inc's financial performance.