MillerKnoll Inc (MLKN)
Interest coverage
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Mar 4, 2023 | Feb 28, 2023 | Dec 3, 2022 | Nov 30, 2022 | Sep 3, 2022 | Aug 31, 2022 | May 31, 2022 | May 28, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 69,700 | 196,400 | 183,200 | 227,800 | 229,000 | 225,000 | 213,200 | 163,600 | 145,100 | 124,100 | 135,100 | 160,500 | 167,400 | 196,200 | 200,800 | 238,000 | 235,800 | 223,300 | 195,600 | 166,200 |
| Interest expense (ttm) | US$ in thousands | 78,200 | 77,500 | 75,500 | 75,400 | 76,400 | 77,200 | 78,000 | 78,100 | 76,600 | 76,500 | 76,400 | 74,800 | 74,800 | 72,400 | 70,000 | 64,600 | 59,200 | 52,700 | 46,200 | 42,500 |
| Interest coverage | 0.89 | 2.53 | 2.43 | 3.02 | 3.00 | 2.91 | 2.73 | 2.09 | 1.89 | 1.62 | 1.77 | 2.15 | 2.24 | 2.71 | 2.87 | 3.68 | 3.98 | 4.24 | 4.23 | 3.91 |
February 28, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $69,700K ÷ $78,200K
= 0.89
MillerKnoll Inc's interest coverage ratio has shown a decreasing trend over the reported periods. Starting at 3.91 on May 28, 2022, the ratio declined to 0.89 on February 28, 2025. This indicates that the company's ability to cover its interest expenses with its earnings has weakened over time. A lower interest coverage ratio implies that the company may have difficulty meeting its interest obligations from operating income alone. It is essential for stakeholders to monitor this ratio closely, as a declining trend could signal financial distress and the need for a strategic review of the company's debt levels and profitability.