MillerKnoll Inc (MLKN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.60 | 1.59 | 1.59 | 1.56 | 1.56 | 1.67 | 1.74 | 1.69 | 1.72 | 1.50 | 1.52 | 1.42 | 1.41 | 1.90 | 1.74 | 1.65 | 1.59 | 1.95 | 1.26 | 1.39 |
| Quick ratio | 0.84 | 0.78 | 0.80 | 0.80 | 0.77 | 0.84 | 0.30 | 0.26 | 0.28 | 0.71 | 0.72 | 0.69 | 0.68 | 1.31 | 1.25 | 1.20 | 1.10 | 1.40 | 0.75 | 0.89 |
| Cash ratio | 0.31 | 0.31 | 0.33 | 0.32 | 0.31 | 0.32 | 0.30 | 0.26 | 0.28 | 0.27 | 0.29 | 0.27 | 0.30 | 0.85 | 0.81 | 0.76 | 0.64 | 0.98 | 0.24 | 0.39 |
MillerKnoll Inc has maintained a relatively stable current ratio over the past few years, ranging from 1.50 to 1.95. This indicates that the company has consistently had more current assets than current liabilities to cover its short-term obligations.
On the other hand, the quick ratio has been more volatile, with values ranging from 0.26 to 1.40. This suggests that the company's ability to meet its short-term liabilities with its most liquid assets (such as cash and accounts receivable) has fluctuated over time.
The cash ratio, which measures the company's ability to cover its current liabilities with only cash and cash equivalents, has generally been moderate, with values ranging from 0.24 to 0.98. This implies that the company has maintained a reasonable level of cash reserves relative to its short-term obligations.
Overall, while the current ratio indicates a consistent ability to cover short-term liabilities, the quick ratio and cash ratio show some variability in the company's liquidity position. Monitoring these ratios over time can provide insights into MillerKnoll Inc's ability to manage its short-term financial obligations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for MillerKnoll Inc has shown fluctuations over the past few years. It indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle is generally favorable as it implies a more efficient use of working capital.
Looking at the data provided, we can observe that the cash conversion cycle has ranged from a low of 23.46 days on Mar 4, 2023, to a high of 61.61 days on Nov 27, 2021. The cycle appears to have decreased significantly from the peak in late 2021 to the current 57.56 days as of Nov 30, 2024. This trend suggests that the company has improved its efficiency in managing cash flows related to its operations, potentially by optimizing inventory levels, speeding up receivables collection, or extending payables.
It is worth noting that the cash conversion cycle can be impacted by various factors such as industry trends, economic conditions, and company-specific policies. Therefore, ongoing monitoring and analysis of this metric are crucial for assessing the company's liquidity and operational efficiency. A thorough understanding of the drivers behind changes in the cash conversion cycle can help management make informed decisions to enhance financial performance and optimize working capital management.