MillerKnoll Inc (MLKN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.68 | 70.63 | 63.81 | 66.85 | 56.95 | 57.27 | 53.91 | 54.79 | 52.63 | 55.13 | 55.88 | 55.94 | 55.67 | 59.81 | 58.64 | 62.73 | 68.60 | 64.72 | 71.12 | 62.55 |
| Days of sales outstanding (DSO) | days | 37.51 | 35.11 | 37.93 | 33.55 | 34.03 | 32.26 | 31.87 | 34.06 | 16.16 | 15.13 | 15.00 | 16.73 | 33.54 | — | 34.17 | — | 33.72 | — | 31.53 | 32.71 |
| Number of days of payables | days | 44.06 | 39.52 | 36.26 | 35.83 | 32.08 | 31.68 | 29.82 | 30.64 | 29.44 | 29.36 | 29.76 | 30.93 | 30.78 | 31.33 | 30.72 | 30.09 | 32.90 | 31.88 | 35.03 | 37.82 |
| Cash conversion cycle | days | 66.12 | 66.22 | 65.48 | 64.57 | 58.91 | 57.85 | 55.95 | 58.20 | 39.35 | 40.90 | 41.12 | 41.74 | 58.43 | 28.47 | 62.09 | 32.64 | 69.41 | 32.84 | 67.62 | 57.44 |
May 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.68 + 37.51 – 44.06
= 66.12
The analysis of MillerKnoll Inc’s cash conversion cycle (CCC) over the specified periods reveals notable fluctuations and general trends. The CCC measures the time span, in days, between the outflow of cash for inventory and the inflow from sales receipts, indicating the efficiency of working capital management.
Initially, from May 31, 2022, to November 30, 2022, the CCC demonstrates variability, peaking at approximately 69.41 days on November 30, 2022, after starting at 57.44 days in late May 2022. Notably, there is a significant reduction during early September 2022, where the metric drops sharply to around 32.84 days on September 3, 2022, suggesting a period of improved operational efficiency or tighter inventory and receivables management.
Subsequent data shows a recurring pattern of fluctuations with intermittent increases and decreases. For example, from December 3, 2022, to February 28, 2023, the CCC rises from about 32.64 days to 62.09 days, indicating a lengthening in the cycle and potentially slower receivables collection or increased inventory holding periods. However, a marked contraction occurs by March 4, 2023, with the CCC falling to approximately 28.47 days, matching the earlier reductions observed in September 2022.
Following this reduction, the CCC remains relatively lower and more stable through mid-2023, averaging approximately 41 days, with slight variations. The most recent data from August 31, 2023, to May 31, 2024, indicates a stabilization with the CCC oscillating around 41 to 66 days, with the latest figures in May 2025 reflecting a marginally higher average near 66 days.
Overall, the trend suggests periods of operational efficiency improvements interspersed with phases of cycle elongation, possibly attributable to seasonal demand variations, changes in inventory management, credit policies, or supply chain dynamics. The general upward trend in the latter part of the timeline indicates a gradual lengthening of the cash conversion cycle, implying potentially growing working capital requirements or adjustments in collection and inventory practices.