HNI Corp (HNI)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,409,300 | 2,475,900 | 2,438,800 | 2,352,100 | 2,247,700 | 2,159,600 | 2,184,200 | 2,263,500 | 2,308,700 | 2,301,700 | 2,195,600 | 2,105,417 | 2,044,596 | 1,951,933 | 1,868,299 | 1,898,937 | 1,921,035 | 2,017,899 | 2,118,481 | 2,101,879 |
| Inventory | US$ in thousands | 194,300 | 210,300 | 212,100 | 196,600 | 228,900 | 234,800 | 191,100 | 180,100 | 222,200 | 227,000 | 206,561 | 181,600 | 188,590 | 187,467 | 154,176 | 137,811 | 144,135 | 156,647 | 170,522 | 163,465 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,409,300K ÷ $194,300K
= 12.40
The inventory turnover for HNI Corp has shown some fluctuations over the past five years, with values ranging from a high of 13.78 to a low of 9.20. The inventory turnover ratio measures how efficiently a company is managing its inventory by showing how many times the company sells and replaces its inventory during a specific period.
Between December 31, 2019, and June 30, 2021, the inventory turnover remained relatively stable, within the range of 10.41 to 13.78. However, from March 31, 2021, to March 31, 2024, there was a declining trend in the inventory turnover ratio, with values dropping to a low of 9.20 by June 30, 2023.
The decrease in the inventory turnover ratio may indicate that HNI Corp is taking longer to sell its inventory or is potentially overstocked. This could lead to higher carrying costs and risks associated with holding excess inventory.
Overall, it is essential for HNI Corp to closely monitor and manage its inventory turnover to ensure efficient operations, minimize carrying costs, and maintain optimal inventory levels to support sales and profitability.