HNI Corp (HNI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Inventory turnover		12.40	11.77	11.50	11.96	9.82	9.20	11.43	12.57	10.39	10.14	10.63	11.59	10.84	10.41	12.12	13.78	13.33	12.88	12.42	12.86
DOH	days	29.44	31.00	31.74	30.51	37.17	39.68	31.93	29.04	35.13	36.00	34.34	31.48	33.67	35.06	30.12	26.49	27.39	28.33	29.38	28.39

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.40
= 29.44

The Days of Inventory on Hand (DOH) for HNI Corp has shown some fluctuation over the period from December 31, 2019, to December 31, 2024. The DOH started at approximately 28.39 days at the end of 2019 and remained relatively stable around this level until mid-2020. From there, the metric decreased gradually, reaching a low of 26.49 days by the end of 2020.

However, starting from the first quarter of 2021, the DOH began to increase steadily, indicating a longer period of inventory on hand. By the third quarter of 2021, the DOH had risen to 33.67 days and peaked at 39.68 days by the end of the second quarter of 2023. This increase suggests that HNI Corp may have been holding more inventory relative to its sales during this period.

Subsequently, there was a slight decline in the DOH towards the end of 2023 and into the first quarter of 2024. However, the metric remained above the levels seen in the earlier years, indicating that the company continued to hold inventory for an extended period.

Overall, the trend in HNI Corp's DOH indicates some variability in inventory management practices over the years, with periods of both lower and higher inventory turnover. It may be beneficial for the company to closely monitor and assess its inventory levels to optimize working capital efficiency and minimize carrying costs.