Herman Miller Essay
1. Financial Evaluation
a. See table in appendix.
b. As one of the top competitors in the office furniture industry, Herman Miller is recognized for developing innovative designs into various products for offices, homes, healthcare facilities, and the U.S. government. The economic crisis in 2008 greatly impacted Herman Miller’s sales revenue, however, through research and development, sustainability, and acquisitions, the company was able produce innovative and timeless products and as a result showed an increasing sales trend over the past few years. What sets Herman Miller apart from its competitors is their ability to produce innovative yet sustainable products. This competitive advantage allows them to retain a strong market share in the …show more content…
With their fiscal year ending on May 28, 2011, Herman Miller’s operating income was $123.3 million with an operating profit margin is 7.5 and an industry average of 4.3. In addition, Herman Miller significantly increased their total assets by creating 13 new products, such as, chairs, desks, and tables made for offices as well as healthcare facilities using state-of-the-art sustainable technology, which they acquired from Colebrook Bosson & Saunders in 2010. This increase reflected their return on total assets with a ratio of 8.7 and an industry average of 4.1. Cash flow from operations decreased by $8 million from 2010 to 2011, which resulted in a current ratio and working capital of 1.8 and 205.90 and industry ratios of 1.4 and 15736.8 respectively. The cash from working capital was associated with inventory, prepaid expenses, and receivables. Herman Miller’s long-term debt-to-capital ratio was 54.9 with an industry average of 36.9. Their price-earnings ratio was 23.2 with an industry average of 47.3. With respect to the office furniture industry the two measures of financial performance on which Herman Miller did
a. See table in appendix.
b. As one of the top competitors in the office furniture industry, Herman Miller is recognized for developing innovative designs into various products for offices, homes, healthcare facilities, and the U.S. government. The economic crisis in 2008 greatly impacted Herman Miller’s sales revenue, however, through research and development, sustainability, and acquisitions, the company was able produce innovative and timeless products and as a result showed an increasing sales trend over the past few years. What sets Herman Miller apart from its competitors is their ability to produce innovative yet sustainable products. This competitive advantage allows them to retain a strong market share in the …show more content…
With their fiscal year ending on May 28, 2011, Herman Miller’s operating income was $123.3 million with an operating profit margin is 7.5 and an industry average of 4.3. In addition, Herman Miller significantly increased their total assets by creating 13 new products, such as, chairs, desks, and tables made for offices as well as healthcare facilities using state-of-the-art sustainable technology, which they acquired from Colebrook Bosson & Saunders in 2010. This increase reflected their return on total assets with a ratio of 8.7 and an industry average of 4.1. Cash flow from operations decreased by $8 million from 2010 to 2011, which resulted in a current ratio and working capital of 1.8 and 205.90 and industry ratios of 1.4 and 15736.8 respectively. The cash from working capital was associated with inventory, prepaid expenses, and receivables. Herman Miller’s long-term debt-to-capital ratio was 54.9 with an industry average of 36.9. Their price-earnings ratio was 23.2 with an industry average of 47.3. With respect to the office furniture industry the two measures of financial performance on which Herman Miller did