HNI Corp (HNI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,434,000 | 2,361,800 | 2,184,400 | 1,948,370 | 2,238,500 |
| Property, plant and equipment | US$ in thousands | 555,200 | 352,500 | 366,800 | 365,957 | 381,507 |
| Fixed asset turnover | 4.38 | 6.70 | 5.96 | 5.32 | 5.87 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,434,000K ÷ $555,200K
= 4.38
Fixed asset turnover is a key financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. In the case of HNI Corp, the trend in fixed asset turnover over the past five years shows fluctuations.
The fixed asset turnover ratio for HNI Corp was 4.38 in 2023, indicating that the company generated $4.38 in revenue for every $1 invested in fixed assets during that year. This ratio decreased compared to the previous year, suggesting that the company may be less efficient in utilizing its fixed assets to generate revenue.
In 2022, the fixed asset turnover ratio was notably higher at 6.70, indicating improved efficiency in revenue generation from fixed assets. This increase in the ratio suggests that HNI Corp was able to generate more revenue relative to its investment in fixed assets during that year.
The trend continues with fixed asset turnover ratios of 5.96 in 2021, 5.32 in 2020, and 5.87 in 2019. These ratios indicate that HNI Corp has generally maintained a relatively efficient utilization of fixed assets to generate revenue over the past five years, with some year-to-year variability.
Overall, while the fixed asset turnover ratio fluctuated over the years, it is essential for HNI Corp to monitor and improve this ratio to ensure optimal utilization of its fixed assets and enhance overall operational efficiency.