HNI Corp (HNI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,352,200 | 2,263,500 | 2,105,400 | 1,898,940 | 2,101,880 |
| Inventory | US$ in thousands | 196,600 | 180,100 | 181,600 | 137,811 | 163,465 |
| Inventory turnover | 11.96 | 12.57 | 11.59 | 13.78 | 12.86 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,352,200K ÷ $196,600K
= 11.96
HNI Corp's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover generally indicates more efficient inventory management.
In 2023, the inventory turnover ratio was 11.96, a slight decrease from the previous year's ratio of 12.57 in 2022. This suggests that the company took slightly longer to sell and replace its inventory in 2023 compared to the previous year.
Comparing the 2023 ratio to earlier years, we observe that it is lower than the 13.78 recorded in 2020 and 12.86 in 2019, indicating a relative decrease in inventory turnover efficiency. However, the 2023 ratio is higher than the 11.59 recorded in 2021, showing some improvement in inventory turnover compared to that year.
Overall, while HNI Corp's inventory turnover has fluctuated over the past five years, it is crucial for the company to monitor and potentially streamline its inventory management processes to enhance efficiency and profitability.