Breaking Down MillerKnoll, Inc. (MLKN) Financial Health: Key Insights for Investors

Are you keeping a close watch on MillerKnoll Inc. (MLKN) and wondering about its financial stability? For fiscal year 2024, the company reported net sales of $3.6 billion, reflecting an 11.2% year-over-year decrease. Despite this dip in sales, the company's gross and operating margins actually improved. The long-term debt as of June 1, 2024, stood at $1.29 billion. With scheduled debt maturities of $43.6 million, $46.8 million, and $276.4 million for fiscal years 2025, 2026, and 2027 respectively, how is the company managing its financial obligations? Read on to discover key insights into MillerKnoll's financial health and what it means for investors.

MillerKnoll, Inc. (MLKN) Revenue Analysis

Understanding MillerKnoll, Inc.'s (MLKN) revenue streams involves examining its various sources, growth rates, and segment contributions. A detailed look into these aspects provides investors with a clear picture of the company's financial health and operational performance.

MillerKnoll, Inc.'s revenue is derived from a mix of product sales and services across different geographical regions. Key revenue sources include:

• Seating: This segment typically constitutes a significant portion of the company's revenue.
• Tables: Sales of various types of tables for office and home settings.
• Storage: Revenue from storage solutions and related products.
• Textiles: Sales of fabrics and other textile products.
• Other Furniture Products: A diverse range of additional furniture offerings.

Analyzing the year-over-year revenue growth rate provides insights into MillerKnoll, Inc.'s performance trends. Factors influencing these trends include economic conditions, market demand, and strategic initiatives undertaken by the company. Recent data indicates:

For the fiscal year 2024, MillerKnoll reported net sales of $4.08 billion, which is a decrease of 7.8% on a reported basis and 8.2% organically compared to the prior year. The fourth quarter of fiscal 2024 saw net sales of $1.04 billion, a decrease of 5.9% on a reported basis and 6.4% organically.

Here’s a breakdown of the revenue contribution by different business segments for fiscal year 2024:

Significant changes in revenue streams can arise from various factors, such as acquisitions, divestitures, or shifts in market focus. For instance, MillerKnoll's strategic initiatives and market adjustments have played a crucial role in shaping its revenue composition. Note that the company is currently focusing on cost savings and operational improvements to enhance profitability amidst sales declines.

To gain more insights into the investor profile and understand who is investing in MillerKnoll, Inc., check out this detailed analysis: Exploring MillerKnoll, Inc. (MLKN) Investor Profile: Who’s Buying and Why?

MillerKnoll, Inc. (MLKN) Profitability Metrics

Assessing MillerKnoll, Inc.'s (MLKN) financial health requires a close examination of its profitability metrics, which provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. These metrics are crucial for investors to gauge the efficiency and sustainability of MillerKnoll, Inc.'s (MLKN) operations.

Key profitability metrics to consider include:

• Gross Profit Margin: Indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS).
• Operating Profit Margin: Reflects the percentage of revenue remaining after deducting both COGS and operating expenses.
• Net Profit Margin: Shows the percentage of revenue remaining after all expenses, including interest and taxes, are deducted.

For the fiscal year 2024, MillerKnoll, Inc. (MLKN) reported a gross profit of $1.67 billion. Their operating income stood at $175.4 million, and the net income was $4.5 million.

Analyzing these figures as percentages of revenue provides the profit margins:

• Gross Profit Margin: Approximately 37.2%
• Operating Profit Margin: Roughly 3.9%
• Net Profit Margin: About 0.1%

A comparison of MillerKnoll, Inc.'s (MLKN) profitability ratios with industry averages helps to contextualize its performance. While specific industry averages can vary, comparing these margins to those of competitors and benchmarks can reveal whether MillerKnoll, Inc. (MLKN) is outperforming or underperforming its peers.

Evaluating operational efficiency involves scrutinizing cost management and gross margin trends. Effective cost management directly impacts profitability. For instance, a rising gross margin indicates improved efficiency in production or procurement, contributing positively to the bottom line.

Here's a simplified table illustrating MillerKnoll, Inc.'s (MLKN) profitability metrics for the fiscal year 2024:

In summary, MillerKnoll, Inc.'s (MLKN) profitability metrics provide a crucial overview of its financial health. Investors should monitor these metrics closely and compare them against industry benchmarks and historical trends to make informed decisions.

Read more about MillerKnoll, Inc.'s (MLKN) Financial Health: Breaking Down MillerKnoll, Inc. (MLKN) Financial Health: Key Insights for Investors

MillerKnoll, Inc. (MLKN) Debt vs. Equity Structure

Understanding how MillerKnoll, Inc. (MLKN) finances its growth involves analyzing its debt and equity structure. This includes assessing the levels of long-term and short-term debt, evaluating the debt-to-equity ratio, and examining recent financing activities.

MillerKnoll's financial strategy incorporates a mix of debt and equity to fund operations and expansion. Here’s a detailed look:

• Debt Levels: Examining both long-term and short-term debt provides a view of MillerKnoll's obligations.
• Debt-to-Equity Ratio: This ratio is crucial for understanding the extent to which MillerKnoll uses debt to finance its assets compared to equity.
• Recent Financing Activities: Monitoring new debt issuances, credit ratings, and refinancing activities helps in understanding the company's financial maneuvering.

As of the third quarter of fiscal year 2024, MillerKnoll's total debt was reported at $1.16 billion. The company’s debt structure includes both short-term and long-term liabilities, reflecting a mix of financing strategies to support its operations and growth initiatives.

The debt-to-equity ratio is a key metric for evaluating MillerKnoll's financial leverage. Calculating this ratio involves dividing the total liabilities by shareholders' equity. For the third quarter of fiscal year 2024, MillerKnoll's total liabilities amounted to $1.79 billion, while shareholders' equity stood at $1.26 billion. This results in a debt-to-equity ratio of approximately 1.42, indicating that MillerKnoll has more debt than equity.

Industry standards for the debt-to-equity ratio can vary, but a ratio above 1.0 generally suggests higher financial leverage. MillerKnoll's ratio of 1.42 indicates a reliance on debt financing, which can amplify both profits and losses. It's important to compare this ratio with industry peers to gauge whether MillerKnoll's leverage is typical or higher than average.

Recent activities such as debt issuances, credit ratings, and refinancing play a crucial role in understanding MillerKnoll's financial strategy. These factors can significantly impact the company's financial health and investor perception.

• Debt Issuances: New debt issuances can provide MillerKnoll with additional capital for investments or acquisitions.
• Credit Ratings: Credit ratings from agencies like Standard & Poor's and Moody's affect the interest rates MillerKnoll pays on its debt.
• Refinancing Activities: Refinancing existing debt can help MillerKnoll lower its interest expenses or extend its debt maturity profile.

Balancing debt and equity is essential for MillerKnoll to maintain financial stability and flexibility. While debt can provide capital for growth, excessive debt can increase financial risk. Equity financing, on the other hand, can reduce financial leverage but may dilute existing shareholders' ownership.

Here's a table summarizing key aspects of MillerKnoll's debt versus equity structure:

In conclusion, MillerKnoll's approach to balancing debt and equity is critical for its financial health. Investors should monitor these metrics to assess the company's financial risk and growth potential.

More insights available here: Breaking Down MillerKnoll, Inc. (MLKN) Financial Health: Key Insights for Investors

MillerKnoll, Inc. (MLKN) Liquidity and Solvency

Analyzing MillerKnoll, Inc.'s (MLKN) financial health requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Assessing MillerKnoll, Inc.'s Liquidity:

• Current and Quick Ratios: These ratios are essential indicators of a company's ability to cover its short-term liabilities with its current assets.

According to , MillerKnoll's liquidity ratios are as follows:

A current ratio of above 1 indicates that a company's assets can cover its current liabilities. For MillerKnoll, Inc., the current ratio was 1.53 as of June 2024, suggesting a reasonable liquidity position. The quick ratio, which excludes inventories from current assets, was 0.92, indicating the company's ability to meet short-term obligations with its most liquid assets.

• Analysis of Working Capital Trends: Working capital, the difference between current assets and current liabilities, is a measure of a company's short-term financial health.

MillerKnoll's net working capital growth last quarter was 39.9%.

• Cash Flow Statements Overview: Examining cash flow trends from operating, investing, and financing activities provides a comprehensive view of a company's liquidity.

According to the latest report from March 1, 2025:

• Cash on hand and availability on our revolving credit facility totaled $468.2 million.
• The business generated $62.1 million of cash flow from operations.

For the full fiscal year 2024, MillerKnoll's cash flow from operations was $78.4 million.

• Potential Liquidity Concerns or Strengths:

As of June 1, 2024, MillerKnoll's liquidity position reflected cash on hand and availability on its revolving credit facility totaling $552.7 million.

Debt and Solvency:

The company's debt levels and its ability to meet its debt obligations are critical for assessing its solvency. Key indicators include the debt-to-equity ratio and debt service coverage ratio.

According to available data:

• Debt-to-Equity Ratio: 1.27 as of June 2024
• Net Debt-to-EBITDA Ratio: 2.63x at the end of Q4 2024

Scheduled debt maturities for fiscal years 2025, 2026, and 2027 are $43.6 million, $46.8 million, and $276.4 million, respectively.

The consolidated long-term debt of MillerKnoll as of June 1, 2024, was reported to be $1.29 billion.

Additional points:

For fiscal year 2024, net sales were $3.6 billion, reflecting a year-over-year decrease of 11.2%. However, gross margin and operating margin both improved year-over-year.

MillerKnoll is actively managing its capital structure, as evidenced by the repurchase of approximately 1.4 million shares for a total cash outlay of $37.3 million during Q4 2024.

For further insights into MillerKnoll's values, refer to Mission Statement, Vision, & Core Values of MillerKnoll, Inc. (MLKN).

MillerKnoll, Inc. (MLKN) Valuation Analysis

Determining whether MillerKnoll, Inc. (MLKN) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment.

Several financial ratios offer insights into MillerKnoll's valuation:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or historical averages.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. A lower P/B ratio may suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the company's enterprise value (market capitalization plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization. It provides a valuation measure that is independent of capital structure and accounting decisions.

Analyzing these ratios in isolation is not sufficient. It's important to compare them against industry averages and MillerKnoll's historical performance to contextualize the valuation.

Stock price trends provide a historical perspective on investor sentiment and market perception:

• 12-Month Stock Price Trend: Reviewing the stock's performance over the past year can reveal whether it has been trending upwards (potentially indicating overvaluation) or downwards (potentially indicating undervaluation).

For example, as of March 21, 2024, MillerKnoll's stock has exhibited the following trend:

MillerKnoll Inc. (MLKN) had a 52-week high of $34.59, and a 52-week low of $17.77. This range provides context, but does not definitively determine over or undervaluation without further analysis.

Dividend yield and payout ratios are relevant for income-focused investors:

• Dividend Yield: This is the annual dividend payment divided by the stock price, expressed as a percentage. A higher yield can be attractive, but it's crucial to assess the sustainability of the dividend.
• Payout Ratio: This is the percentage of earnings paid out as dividends. A high payout ratio may indicate that the company has limited room to increase dividends in the future.

Based on the latest information, MillerKnoll's dividend data is as follows:

MillerKnoll's most recent dividend payment was on January 16, 2024, with shareholders of record on December 29, 2023, receiving $0.235 per share.

Analyst consensus provides an external perspective on the stock's valuation and future prospects:

• Analyst Ratings: These ratings typically range from 'buy' to 'sell,' reflecting analysts' opinions on the stock's potential return.
• Price Targets: Analysts often set price targets, indicating their expectations for the stock's future price.

According to the latest available data:

As of March 2024, analysts have provided ratings with a consensus estimate suggesting a potential upside. However, these estimates should be viewed as opinions and not guarantees.

A comprehensive valuation analysis should integrate these different perspectives to arrive at a well-informed conclusion about whether MillerKnoll is overvalued or undervalued. Furthermore, it is essential to consider qualitative factors, such as the company's competitive positioning, management quality, and industry trends, to gain a holistic understanding of its intrinsic value.

To gain more insight into the investors of MillerKnoll, Inc. (MLKN), consider reading: Exploring MillerKnoll, Inc. (MLKN) Investor Profile: Who’s Buying and Why?

MillerKnoll, Inc. (MLKN) Risk Factors

MillerKnoll, Inc. (MLKN) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions, requiring the company to proactively manage and mitigate potential adverse effects.

Industry Competition: The furniture industry is highly competitive. MillerKnoll faces competition from numerous companies, including those with lower cost structures, which could put pressure on pricing and margins. Increased competition may require MillerKnoll to increase marketing and promotional spending, impacting profitability.

Regulatory Changes: Changes in regulations, such as environmental laws or trade policies, can increase compliance costs and disrupt supply chains. For example, tariffs on imported materials could raise production costs and reduce profitability. Staying compliant with evolving regulations requires ongoing investment and monitoring.

Market Conditions: Economic downturns can reduce demand for furniture, impacting sales and revenue. Consumer spending on discretionary items like furniture tends to decline during periods of economic uncertainty. Monitoring economic indicators and adjusting production levels can help mitigate this risk.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: Supply chain disruptions, such as those caused by geopolitical events or natural disasters, can impact production and delivery schedules. Labor shortages and increased labor costs can also affect operational efficiency and profitability.
• Financial Risks: Fluctuations in currency exchange rates can impact international sales and earnings. Changes in interest rates can increase borrowing costs, affecting the company's debt obligations.
• Strategic Risks: The success of new product launches and strategic initiatives is not guaranteed. Failure to innovate and adapt to changing customer preferences can lead to decreased market share.

Mitigation strategies and plans are crucial for addressing these risks. MillerKnoll may employ several strategies to minimize potential negative impacts:

• Diversification: Diversifying the supply chain can reduce reliance on any single supplier or region. This helps to minimize disruptions caused by localized events.
• Hedging: Using financial instruments to hedge against currency fluctuations can protect international earnings. This strategy helps to stabilize financial performance in volatile markets.
• Innovation: Investing in research and development to create innovative products can maintain a competitive edge. This ensures that the company continues to meet evolving customer needs and preferences.
• Cost Management: Implementing cost-saving measures can improve profitability and resilience during economic downturns. This includes streamlining operations and optimizing resource allocation.

By actively monitoring and mitigating these risks, MillerKnoll, Inc. (MLKN) can better safeguard its financial health and ensure long-term sustainability.

Read more about MillerKnoll, Inc. (MLKN) Investor Profile here: Exploring MillerKnoll, Inc. (MLKN) Investor Profile: Who’s Buying and Why?

MillerKnoll, Inc. (MLKN) Growth Opportunities

MillerKnoll, Inc. (MLKN) faces a dynamic landscape of growth opportunities driven by product innovation, strategic market expansion, and synergistic acquisitions. These elements collectively shape the trajectory of future revenue and earnings, bolstered by key strategic initiatives and competitive advantages.

Key growth drivers for MillerKnoll, Inc. (MLKN) include:

• Product Innovations: Continuous investment in research and development to launch new, innovative products that meet evolving customer needs and preferences.
• Market Expansions: Strategic entry into new geographic markets and expansion within existing markets to increase market share and revenue streams.
• Acquisitions: Pursuing strategic acquisitions to expand product offerings, enhance market presence, and achieve synergies.

Future revenue growth projections and earnings estimates for MillerKnoll, Inc. (MLKN) are influenced by several factors. While specific figures require up-to-date financial analysis, key considerations include overall economic conditions, industry trends, and the company's ability to execute its strategic initiatives. Investors often look to analyst reports and company guidance for the most current projections.

Strategic initiatives and partnerships that may drive future growth include:

• E-commerce Growth: Enhancing online sales channels to capitalize on the increasing trend of online shopping.
• Sustainability Initiatives: Implementing sustainable practices and offering eco-friendly products to appeal to environmentally conscious consumers.
• Partnerships: Collaborating with other companies to expand product offerings and reach new markets.

MillerKnoll, Inc. (MLKN) possesses several competitive advantages that position it for growth:

• Brand Reputation: A strong brand reputation for design and quality, which can command premium pricing and customer loyalty.
• Product Portfolio: A diverse product portfolio that caters to a wide range of customer needs and preferences.
• Distribution Network: An extensive distribution network that provides access to a large customer base.

To illustrate potential growth avenues, consider the following hypothetical scenario:

For a deeper dive into MillerKnoll, Inc. (MLKN) and its investor profile, check out: Exploring MillerKnoll, Inc. (MLKN) Investor Profile: Who’s Buying and Why?