MillerKnoll Inc (MLKN)
Debt-to-assets ratio
| Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,365,100 | 1,379,200 | 274,900 | 539,900 | 281,900 |
| Total assets | US$ in thousands | 4,274,800 | 4,514,000 | 2,076,800 | 2,053,900 | 1,569,300 |
| Debt-to-assets ratio | 0.32 | 0.31 | 0.13 | 0.26 | 0.18 |
June 3, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,365,100K ÷ $4,274,800K
= 0.32
The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. A higher ratio indicates that a company is more reliant on debt to finance its operations and expansion, which can increase the financial risk for the company and its shareholders. Below is a detailed analysis of MillerKnoll Inc's debt-to-assets ratio based on the provided historical data:
1. Jun 3, 2023: 0.33
- The debt-to-assets ratio increased to 0.33 in 2023, indicating that 33% of the company's assets are financed by debt. This suggests a moderate level of leverage compared to the previous year.
2. May 28, 2022: 0.31
- The ratio slightly increased from the previous year, reaching 0.31, implying a gradual increase in the company's reliance on debt to finance its assets.
3. May 29, 2021: 0.13
- The debt-to-assets ratio significantly decreased to 0.13 in 2021, indicating a substantial reduction in the proportion of debt financing relative to the company's assets. This suggests a lower financial risk and a stronger financial position.
4. May 30, 2020: 0.29
- The ratio increased to 0.29 in 2020, signifying an increase in the company's reliance on debt compared to the previous year. This could indicate a strategy to fund expansion or increased operating activities through debt financing.
5. Jun 1, 2019: 0.18
- The debt-to-assets ratio increased slightly from the previous year to 0.18, indicating a moderate level of leverage and debt financing for the company's assets.
In summary, the trend in MillerKnoll Inc's debt-to-assets ratio fluctuated over the years, showing periods of increased reliance on debt financing (2023, 2020) and significant reduction in debt dependency (2021). This reveals the company's changing approach to capital structure and its impact on financial risk and stability. Further analysis of the company's financial strategy and business decisions would be needed to fully interpret the implications of these changes in the debt-to-assets ratio.