MillerKnoll Inc (MLKN)
Interest coverage
| May 31, 2024 | Jun 3, 2023 | May 31, 2023 | May 31, 2022 | May 28, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 175,900 | 120,600 | 122,300 | 29,200 | 21,800 |
| Interest expense | US$ in thousands | 76,200 | 74,000 | 70,900 | 37,800 | 37,800 |
| Interest coverage | 2.31 | 1.63 | 1.72 | 0.77 | 0.58 |
May 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $175,900K ÷ $76,200K
= 2.31
The interest coverage ratio for MillerKnoll Inc has shown a slightly improving trend over the past few years. As of May 28, 2022, the interest coverage was quite low at 0.58, indicating that the company's operating income was only sufficient to cover approximately 58% of its interest expenses.
By May 31, 2024, the interest coverage had improved to 2.31, suggesting that the company's ability to cover its interest payments had strengthened significantly. This indicates that the company's operating income was 2.31 times its interest expenses, reflecting a healthier financial position.
Overall, the increasing trend in the interest coverage ratio indicates that MillerKnoll Inc has been gradually improving its ability to meet its interest obligations using its operating income. However, it is important for the company to continue monitoring and managing its interest expenses to ensure sustainable financial health.