MillerKnoll Inc (MLKN)
Quick ratio
| 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 | US$ in thousands | 209,700 | 223,600 | 225,800 | 217,500 | 223,500 | 217,100 | 197,500 | 215,800 | 230,300 | 245,900 | 227,300 | 235,100 | 396,400 | 397,400 | 377,900 | 296,600 | 454,000 | 110,600 | 177,000 | 159,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 7,700 | — | 7,400 | 8,000 | 7,700 | 7,500 | 7,200 | 7,000 | 7,000 | 8,900 | 9,000 | 9,000 |
| Receivables | US$ in thousands | 319,600 | 318,700 | 344,800 | 323,100 | 363,500 | — | — | — | 380,900 | 355,900 | 353,800 | 307,600 | 221,100 | 219,800 | 226,000 | 223,700 | 199,500 | 259,600 | 244,600 | 252,100 |
| Total current liabilities | US$ in thousands | 675,700 | 680,500 | 713,800 | 704,500 | 702,800 | 733,200 | 773,200 | 773,000 | 877,400 | 833,600 | 857,300 | 806,800 | 476,500 | 499,900 | 507,500 | 477,500 | 470,200 | 506,100 | 481,400 | 484,900 |
| 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 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($209,700K
+ $—K
+ $319,600K)
÷ $675,700K
= 0.78
The quick ratio of MillerKnoll Inc has fluctuated over the past several periods. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
From August 2019 to December 2022, the quick ratio remained relatively stable, ranging between 0.87 and 1.31, indicating a healthy liquidity position. However, a significant decline was observed in March 2023, where the quick ratio dropped substantially to 0.30, raising concerns about the company's ability to cover its short-term liabilities with liquid assets.
Subsequently, there was a gradual improvement in the quick ratio figures from March 2023 to August 2024, increasing to 0.78. While the ratio has shown some recovery, it remains below the levels observed in the earlier periods.
Overall, the quick ratio trend suggests that MillerKnoll Inc experienced a liquidity strain in the recent past but has taken steps to enhance its ability to meet short-term obligations with liquid assets. It is important for the company to continue monitoring and managing its liquidity position to ensure financial stability and meet its financial commitments efficiently.