MillerKnoll Inc (MLKN)
Liquidity ratios
| 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 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.35 |
| Quick ratio | 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 | 0.87 |
| Cash ratio | 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 | 0.35 |
MillerKnoll Inc's liquidity ratios show a mixed performance over the past few periods. The current ratio has hovered around 1.5 to 1.7, indicating the company's ability to cover its short-term debts with its current assets. However, there seems to be some fluctuation in this ratio, possibly due to changes in current assets and liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also varied between 0.26 and 1.40. The lower values in some periods suggest that the company may have difficulty meeting its immediate obligations without relying on inventory, which could be a cause for concern.
The cash ratio, representing the most conservative estimate of liquidity by considering only cash and cash equivalents, has fluctuated between 0.24 and 0.98. While the higher values imply a strong ability to cover current liabilities with cash on hand, the lower values indicate a potential liquidity risk if the company faces sudden financial obligations.
Overall, MillerKnoll Inc's liquidity position appears stable in some periods but shows signs of vulnerability in others. It would be important for the company to closely monitor its liquidity ratios and manage its current assets and liabilities effectively to ensure it can meet its short-term financial obligations.
Additional liquidity measure
| 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 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 35.67 |
The cash conversion cycle of MillerKnoll Inc has shown fluctuations over the past few periods. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent period, the cash conversion cycle stood at 54.35 days, indicating that it took the company approximately 54 days to convert its investments in inventory and other resources into cash from sales. This suggests that MillerKnoll Inc may have faced challenges in managing its working capital efficiently, leading to a longer cash conversion cycle.
Looking at historical data, there were periods where the cash conversion cycle was lower, such as in Mar 4, 2023, when it was 23.46 days. This indicates that the company was more effective in managing its working capital and converting investments into cash during that period.
On the other hand, there were instances of longer cash conversion cycles, like in Nov 27, 2021, when it reached 61.61 days. This suggests possible issues with inventory management or collection of accounts receivable, which could have impacted the company's cash flow.
Overall, fluctuations in the cash conversion cycle of MillerKnoll Inc indicate varying efficiency in working capital management over time. It is essential for the company to closely monitor and address factors affecting the cash conversion cycle to improve its cash flow and overall financial performance.