HNI Corp (HNI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,526,400 | 2,434,000 | 2,361,800 | 2,184,400 | 1,948,370 |
| Property, plant and equipment | US$ in thousands | 529,600 | 555,200 | 352,500 | 366,800 | 365,957 |
| Fixed asset turnover | 4.77 | 4.38 | 6.70 | 5.96 | 5.32 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,526,400K ÷ $529,600K
= 4.77
Fixed asset turnover is a key ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. For HNI Corp, the trend in fixed asset turnover over the past five years shows a mixed performance.
In 2020, the fixed asset turnover ratio was 5.32, indicating that the company generated $5.32 in sales for every dollar invested in fixed assets. Over the next three years, the ratio improved steadily, reaching 6.70 in 2022, signaling increased efficiency in utilizing its fixed assets to generate revenue.
However, in 2023, the fixed asset turnover dropped to 4.38, suggesting a decline in the company's ability to generate sales from its fixed asset base. This decrease could be attributed to various factors such as changes in the company's production capacity or sales volumes.
By the end of 2024, the fixed asset turnover ratio rebounded to 4.77, showing some improvement but still below the peak level reached in 2022. The fluctuation in the fixed asset turnover ratio over the years indicates the need for further analysis to understand the underlying reasons for the changes in efficiency in utilizing fixed assets to generate sales for HNI Corp.