MillerKnoll Inc (MLKN)
Cash conversion cycle
| Nov 30, 2024 | Aug 31, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Mar 4, 2023 | Dec 3, 2022 | Sep 3, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.46 | 46.18 | 43.78 | 43.30 | 44.10 | 45.16 | 49.28 | 53.15 | 55.87 | 55.90 | 55.88 | 59.87 | 65.48 | 38.21 | 42.78 | 38.86 | 36.82 | 37.41 | 30.59 | 28.66 |
| Days of sales outstanding (DSO) | days | 37.50 | 32.92 | 15.10 | 16.10 | 14.86 | 16.38 | — | — | — | 35.58 | 37.89 | 43.10 | 43.15 | 32.88 | 34.75 | 34.60 | 33.56 | 29.39 | 35.45 | 33.96 |
| Number of days of payables | days | 26.40 | 24.75 | 24.22 | 24.22 | 23.49 | 24.97 | 25.82 | 25.49 | 27.52 | 33.80 | 36.57 | 41.36 | 48.04 | 29.82 | 33.93 | 33.45 | 31.49 | 24.42 | 27.55 | 25.91 |
| Cash conversion cycle | days | 57.56 | 54.35 | 34.65 | 35.18 | 35.48 | 36.57 | 23.46 | 27.66 | 28.35 | 57.68 | 57.20 | 61.61 | 60.58 | 41.27 | 43.61 | 40.01 | 38.89 | 42.38 | 38.49 | 36.71 |
November 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.46 + 37.50 – 26.40
= 57.56
The cash conversion cycle of MillerKnoll Inc has exhibited fluctuations over the past five years. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the last reported period on Nov 30, 2024, MillerKnoll Inc had a cash conversion cycle of 57.56 days, indicating that it took approximately 57.56 days for the company to convert its investments into cash flows. This was a slight increase from the previous period on Aug 31, 2024, where the cycle was 54.35 days.
Looking back over the available data, the company's cash conversion cycle has shown variability with some periods exhibiting longer cycles, such as on Nov 27, 2021, with 61.61 days, and May 28, 2022, at 57.68 days. Conversely, there were periods with shorter cycles, such as Mar 4, 2023, with 23.46 days, and Dec 3, 2022, at 27.66 days.
Overall, tracking the cash conversion cycle can provide insights into the efficiency of MillerKnoll Inc's operations and its ability to manage cash flows effectively. Fluctuations in the cycle may indicate changes in inventory management, collection policies, or sales efficiency, all of which can impact the company's liquidity and financial performance.