MillerKnoll Inc (MLKN)
Cash ratio
| May 31, 2024 | Jun 3, 2023 | May 31, 2023 | May 31, 2022 | May 28, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 230,400 | 223,500 | 223,500 | 230,300 | 230,300 |
| Short-term investments | US$ in thousands | — | — | — | 7,700 | 7,700 |
| Total current liabilities | US$ in thousands | 697,700 | 702,800 | 702,800 | 872,600 | 877,400 |
| Cash ratio | 0.33 | 0.32 | 0.32 | 0.27 | 0.27 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($230,400K
+ $—K)
÷ $697,700K
= 0.33
The cash ratio of MillerKnoll Inc has shown a stable trend over the past few years. As of May 31, 2024, the cash ratio stands at 0.33, indicating that the company has $0.33 in cash and cash equivalents for every $1 of current liabilities. This suggests that MillerKnoll Inc has a moderate level of liquidity to meet its short-term obligations.
The incremental increase in the cash ratio from 0.27 in May 2022 to 0.33 in May 2024 demonstrates a positive trend in the company's ability to cover its short-term liabilities with cash on hand. This improvement may be attributed to efficient cash management practices or a growth in cash reserves.
Overall, the cash ratio of MillerKnoll Inc suggests that the company has a reasonable level of liquidity, enabling it to meet its immediate financial obligations without relying heavily on external sources of funding. It is essential for the company to maintain this level of liquidity to ensure financial stability and flexibility in managing its short-term cash needs effectively.