MillerKnoll Inc (MLKN)
Current ratio
| Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,176,200 | 1,317,900 | 906,500 | 917,100 | 661,300 |
| Total current liabilities | US$ in thousands | 702,800 | 877,400 | 476,500 | 470,200 | 446,100 |
| Current ratio | 1.67 | 1.50 | 1.90 | 1.95 | 1.48 |
June 3, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,176,200K ÷ $702,800K
= 1.67
The current ratio of MillerKnoll Inc has fluctuated over the past five years, as evidenced by the following figures:
- June 3, 2023: 1.67
- May 28, 2022: 1.50
- May 29, 2021: 1.78
- May 30, 2020: 1.79
- June 1, 2019: 1.48
The current ratio is calculated as current assets divided by current liabilities. A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities.
Analyzing the trend, we note that the current ratio was relatively stable between May 29, 2021, and May 30, 2020, ranging from 1.78 to 1.79, indicating a favorable position in terms of covering short-term liabilities. However, in the years before and after this period, there was some fluctuation.
The decrease in the current ratio from May 29, 2021, to May 28, 2022, could indicate a potential decrease in current assets relative to current liabilities or an increase in current liabilities relative to current assets. In contrast, the increase in the ratio from May 28, 2022, to June 3, 2023, suggests an improvement in the company's ability to cover its short-term obligations.
Overall, although the ratio fluctuates, MillerKnoll Inc has generally maintained a current ratio above 1 over the past five years, indicating a sound position in meeting its short-term obligations. However, the fluctuations should be further analyzed to understand the underlying reasons for the changes in the current ratio.
The company should continue to monitor and manage its current assets and liabilities to ensure a healthy current ratio and effectively manage its short-term financial obligations.