HNI Corp (HNI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,330,400 | 2,352,200 | 2,263,500 | 2,105,400 | 1,898,940 |
| Inventory | US$ in thousands | 194,300 | 196,600 | 180,100 | 181,600 | 137,811 |
| Inventory turnover | 11.99 | 11.96 | 12.57 | 11.59 | 13.78 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,330,400K ÷ $194,300K
= 11.99
HNI Corp's inventory turnover ratio has shown some fluctuation over the past five years. The ratio decreased from 13.78 in December 31, 2020, to 11.59 in December 31, 2021, signaling that the company took longer to sell its inventory in 2021 compared to the previous year. However, the inventory turnover improved slightly in December 31, 2022, to 12.57, indicating a more efficient use of inventory during that period.
Subsequently, the ratio dipped again to 11.96 in December 31, 2023, before increasing marginally to 11.99 in December 31, 2024. These changes suggest varying levels of inventory management efficiency within HNI Corp over the analyzed period. Overall, during this timeframe, the company has been able to turn over its inventory between 11.59 to 13.78 times a year, with the lowest turnover occurring in 2021. The variations in inventory turnover could be influenced by factors such as sales volume, production levels, demand fluctuations, or inventory management practices within the company.