MillerKnoll Debt
| MLKN Stock | USD 24.53 0.80 3.37% |
MillerKnoll holds a debt-to-equity ratio of 1.343. At this time, MillerKnoll's Short and Long Term Debt Total is very stable compared to the past year. As of the 22nd of November 2024, Net Debt is likely to grow to about 1.6 B, while Long Term Debt is likely to drop about 676.2 M. With a high degree of financial leverage come high-interest payments, which usually reduce MillerKnoll's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
MillerKnoll's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. MillerKnoll's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps MillerKnoll Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect MillerKnoll's stakeholders.
For most companies, including MillerKnoll, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for MillerKnoll, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, MillerKnoll's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.2317 | Book Value 19.22 | Operating Margin 0.0506 | Profit Margin 0.018 | Return On Assets 0.0355 |
MillerKnoll |
MillerKnoll Bond Ratings
MillerKnoll financial ratings play a critical role in determining how much MillerKnoll have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for MillerKnoll's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.14) | Unlikely Manipulator | View |
MillerKnoll Debt to Cash Allocation
As MillerKnoll follows its natural business cycle, the capital allocation decisions will not magically go away. MillerKnoll's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
MillerKnoll currently holds 1.76 B in liabilities with Debt to Equity (D/E) ratio of 1.34, which is about average as compared to similar companies. MillerKnoll has a current ratio of 1.69, which is within standard range for the sector. Note, when we think about MillerKnoll's use of debt, we should always consider it together with its cash and equity.MillerKnoll Total Assets Over Time
MillerKnoll Assets Financed by Debt
The debt-to-assets ratio shows the degree to which MillerKnoll uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.MillerKnoll Debt Ratio | 25.0 |
MillerKnoll Corporate Bonds Issued
MillerKnoll Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning MillerKnoll Use of Financial Leverage
Leverage ratios show MillerKnoll's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of MillerKnoll's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 1.8 B | 1.9 B | |
| Net Debt | 1.5 B | 1.6 B | |
| Short Term Debt | 177.9 M | 186.8 M | |
| Long Term Debt | 1.3 B | 676.2 M | |
| Short and Long Term Debt | 43.5 M | 35.2 M | |
| Long Term Debt Total | 1.6 B | 902 M | |
| Net Debt To EBITDA | 3.90 | 8.95 | |
| Debt To Equity | 1.01 | 0.67 | |
| Interest Debt Per Share | 20.17 | 4.54 | |
| Debt To Assets | 0.35 | 0.25 | |
| Long Term Debt To Capitalization | 0.48 | 0.35 | |
| Total Debt To Capitalization | 0.50 | 0.40 | |
| Debt Equity Ratio | 1.01 | 0.67 | |
| Debt Ratio | 0.35 | 0.25 | |
| Cash Flow To Debt Ratio | 0.25 | 0.36 |
Check out the analysis of MillerKnoll Fundamentals Over Time. To learn how to invest in MillerKnoll Stock, please use our How to Invest in MillerKnoll guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Is Commercial Services & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of MillerKnoll. If investors know MillerKnoll will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about MillerKnoll listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 55.604 | Dividend Share 0.75 | Earnings Share 0.87 | Revenue Per Share 49.606 | Quarterly Revenue Growth (0.06) |
The market value of MillerKnoll is measured differently than its book value, which is the value of MillerKnoll that is recorded on the company's balance sheet. Investors also form their own opinion of MillerKnoll's value that differs from its market value or its book value, called intrinsic value, which is MillerKnoll's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because MillerKnoll's market value can be influenced by many factors that don't directly affect MillerKnoll's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between MillerKnoll's value and its price as these two are different measures arrived at by different means. Investors typically determine if MillerKnoll is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MillerKnoll's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.