Answer the following questions regarding Herman Miller.

Look at the trends over the 5 years for the following ratio categories. Identify whether the trend is improving, deteriorating, or neither. (For ratios that fluctuate over time compare 5 years ago with the most recent year.)

a. Liquidity

b. Inventory Turnover

c. Total Asset Turnover

d. Days Sales Outstanding

e. Asset Management

f. Leverage

g. Profitability

RATIO ANALYSIS Herman Miller RMA 6/1/2013 5/31/2014 5/30/2015 Industry Comparison 1.4 1.1 1.3 1.0 1.3 0.9 2.1 0.9 15.4 16.0 10.4 6.2 1.9 1.9 1.8 2.3 37 40 32.3 51 24 23 35.0 59 41 40 44.5 37 5/28/2011 6/2/2012 LIQUIDITY Current 1.8 1.8 Quick 1.5 1.6 ASSET MANAGEMENT Inventory Turnover 16.8 19.1 (COGS / Inventory) Total Asset Turnover 2.0 2.1 DSO (AR Period) 43 34 (365/AR Turnover) Inventory Period 22 19 (365/Inventory Turnover) Days in AP (AP Period) 37 37 (365/[COGS/AP]) Cash Cycle 27 16 LEVERAGE TIE (EBIT / Interest) 6.2 7.9 Debt / Equity (RMA Debt/Worth) 2.9 2.4 Cash Coverage Ratio 8.0 9.8 PROFITABILITY % Profit BT / Tot Assets 12.69% 14.24% Gross Profit 32.63% 34.26% PM (NI/Sales) RMA USES NIBTIS 4.29% 4.36% DuPont Analysis: ROE - ROA EM. ROA=PM'TAT ROE (NI / Total Equity) 34.54% 30.29% ROA (NI / Total Assets) 8.76% 8.96% JPM (NI / Sales) 4.29% 4.36% Total Asset Turnover 2.04 2.05 Equity Multiplier (A/E) 3.94 3.38 20 23 22.8 73 6.7 2.0 8.7 -1.5 1.7 0.7 9.3 1.8 11.9 5.6 1.5 10.27% 34.10% 3.84% 4.38% 33.53% -1.17% 12.17% 36.94% 4.58% 13.40% 28.30% 4.50% 21.35% 7.21% 3.84% 1.88 2.96 -5.94% -2.23% - 1.17% 1.90 2.66 22.75% 8.23% 4.58% 1.80 2.77 25.88% 10.35% 4.50% 2.30 2.50