MillerKnoll Inc (MLKN)
Cash conversion cycle
| 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 | May 28, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 63.23 |
| Days of sales outstanding (DSO) | days | 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 | 33.30 |
| Number of days of payables | days | 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 | 38.23 |
| Cash conversion cycle | days | 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 | 58.30 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.63 + 35.11 – 39.52
= 66.22
The cash conversion cycle of MillerKnoll Inc has shown fluctuations over the analyzed period. The cash conversion cycle is a metric that measures the time it takes for a company to convert its investments in inventory into cash received from sales.
Based on the provided data, the cash conversion cycle ranged from a low of 28.47 days on March 4, 2023, to a high of 71.12 days on August 31, 2022. A lower number indicates that the company is more efficient in managing its working capital.
It is important to note that a shorter cash conversion cycle is generally favorable as it indicates that the company is able to quickly generate cash from its operational activities. This could be achieved by minimizing the time taken to convert inventory into sales and then into cash receipts.
Analyzing trends in the cash conversion cycle can provide insights into the company's inventory management efficiency, collection of receivables, and payment of payables. Continuous monitoring and optimization of the cash conversion cycle can lead to improved liquidity and profitability for MillerKnoll Inc.