MillerKnoll Inc (MLKN)
Solvency 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.34 | 0.00 | 0.00 | 0.00 | 0.32 | 0.32 | 0.32 | 0.33 | 0.31 | 0.31 | 0.30 | 0.29 | 0.13 | 0.13 | 0.14 | 0.14 | 0.26 | 0.14 | 0.15 | 0.15 |
| Debt-to-capital ratio | 0.51 | 0.00 | 0.00 | 0.00 | 0.49 | 0.50 | 0.50 | 0.52 | 0.49 | 0.49 | 0.48 | 0.47 | 0.24 | 0.23 | 0.24 | 0.25 | 0.45 | 0.23 | 0.25 | 0.27 |
| Debt-to-equity ratio | 1.04 | 0.00 | 0.00 | 0.00 | 0.95 | 0.99 | 1.00 | 1.08 | 0.97 | 0.94 | 0.93 | 0.87 | 0.32 | 0.30 | 0.32 | 0.34 | 0.83 | 0.30 | 0.33 | 0.37 |
| Financial leverage ratio | 3.02 | 2.94 | 2.93 | 2.94 | 2.98 | 3.06 | 3.10 | 3.23 | 3.16 | 3.07 | 3.08 | 3.00 | 2.41 | 2.26 | 2.37 | 2.39 | 3.15 | 2.19 | 2.22 | 2.40 |
MillerKnoll Inc's solvency ratios have shown fluctuations over the past two years.
The debt-to-assets ratio, which measures the proportion of total assets financed by debt, has ranged between 0.00 and 0.34 during this period. This indicates that the company has been gradually increasing its reliance on debt to finance its assets.
The debt-to-capital ratio, which indicates the proportion of total capitalization that is financed by debt, has followed a similar trend, fluctuating between 0.00 and 0.51. This suggests that the company's capital structure has been shifting towards a higher reliance on debt financing.
The debt-to-equity ratio, which shows the extent to which equity can cover a company's debt obligations, has also varied widely, ranging from 0.00 to 1.04. This indicates that the company's equity position relative to its debt has been volatile.
The financial leverage ratio, which measures the company's financial risk by examining the proportion of assets financed by debt, has fluctuated between 2.19 and 3.23. This suggests that the company's financial risk has been varying over the period under consideration.
Overall, these solvency ratios indicate that MillerKnoll Inc has been experiencing changes in its capital structure and financial risk profile. Management should closely monitor these ratios to ensure the company's long-term financial stability.
Coverage 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.12 | 2.10 | 1.76 | 1.47 | 1.63 | 2.43 | 2.94 | 2.80 | 0.58 | -0.82 | 0.32 | 4.63 | 17.03 | 1.85 | 1.45 | 3.29 | 0.78 | 22.77 | 22.42 | 18.85 |
The interest coverage ratio of MillerKnoll Inc has shown fluctuations over the past few periods. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.
Looking at the trend in MillerKnoll Inc's interest coverage ratio, we observe that there have been periods where the ratio has been above 1, indicating that the company was able to cover its interest payments comfortably. For example, the interest coverage ratio was 2.12 in August 2024 and 2.10 in March 2024. These figures suggest that the company's operating income was more than twice its interest expenses during these periods.
However, there are also instances where the interest coverage ratio has been below 1, signaling that the company may have had difficulty meeting its interest obligations solely from operating income. Notably, in May 28, 2022, and February 26, 2022, the interest coverage ratio dropped to 0.58 and -0.82, respectively, indicating a potential risk in meeting interest payments.
It is essential for MillerKnoll Inc to maintain a healthy interest coverage ratio consistently to demonstrate its financial stability and ability to service its debt obligations. The company should closely monitor its operating performance and interest expenses to ensure a sustainable and favorable interest coverage ratio in the future.