Herman Miller's cost of goods sold has increased from $1.343 billion to $1.637 billion over the last five years, a 21.9% increase. Should investors be concerned that Herman Miller is having difficulty containing one of the largest components of its operating costs? Explain why or why not

6/1/2019 $ Herman Miller (MLHR) 5 Year - Consolidated Financial Statements (all values in millions) 5/30/2015 5/28/2016 6/3/2017 6/2/2018 Balance Sheet Assets Cash 63.7 $ 84.9 $ 96.2 $ 203.9 ST Investments 5.7 7.5 8.6 8.6 A/R 189.6 211.0 186.6 219.3 Inventory 129.6 128.2 152.4 162.4 Other Current Assets 74.9 48.9 48.1 51.2 Current Assets 463.5 480.5 491.9 645.4 Net PPE 249.5 280.1 314.6 331.4 Intangibles 440.6 441.3 428.0 423.5 Other Fixed Assets 39.1 33.3 71.8 79.2 Total Fixed Assets 729.2 754.7 814.4 834.1 Total Assets $ 1,192.7 $ 1,235.2 $ 1,306.3 $ 1,479.5 159.2 8.8 252.3 184.2 56.8 661.3 348.6 423.0 136.4 908.0 1,569.3 $ $ $ $ 164.7 $ 125.8 165.6 144.3 148.4 $ 155.8 177.7 180.1 3.1 Liabilities A/P Accrued Expenses Notes Payable Current Portion of LT Debt Other Current Liabilities Current Liabilities LT Debt Other LT Liabilities Total Liabilities 72.9 363.4 289.8 88.8 742.0 85.2 80.1 390.0 221.9 71.6 683.5 171.4 152.2 3.8 7.0 79.4 413.8 275.0 95.4 784.2 81.5 385.7 199.9 108.4 694.0 446.1 284.1 99.3 829.5 $ $ $ $ $ $ $ $ $ $ Equity Common Stock Retained Earnings Total Equity 120.5 330.2 450.7 116.4 435.3 551.7 92.8 519.5 612.3 97.0 598.3 695.3 27.1 712.7 739.8 $ $ $ $ $ Total Liab. & Equity $ 1,192.7 $ 1,235.2 $ 1,306.3 $ 1,479.5 $ 1,569.3 # Shares Outstanding Stock Price (per share) 59.6 27.70 59.8 31.64 $ 59.8 32.70 $ 59.2 32.85 59.1 35.49 | $ $ $ $ Income Statement Sales COGS Dep & Amortization Other Operating Costs EBIT Interest Expense Unusual Items EBT Taxes Net Income 2,142.2 $ 1,343.0 49.8 566.1 183.3 17.5 21.1 144.7 47.2 97.5 $ 2,264.9 $ 1,390.7 53.0 610.5 210.7 15.4 (0.9) 196.2 59.5 136.7 $ 2,278.2 $ 1,414.0 58.9 602.2 203.1 15.2 8.9 179.0 55.1 123.9 $ 2,381.2 $ 1,508.2 66.9 623.5 182.6 13.5 (1.4) 170.5 42.4 128.1 $ 2,567.2 1,637.3 72.1 644.1 213.7 12.1 1.5 200.1 39.6 160.5 $ $ $ $ Common Dividends $ Other Distributions Add. To Retained Earnings $ 33.3 11.4 52.8 34.9 $ (3.3) 105.1 $ 39.4 0.3 84.2 42.4 6.9 78.8 45.6 0.5 114.4 $ $ $