HNI Corp (HNI)
Inventory turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,182,700 | 2,078,300 | 1,990,200 | 2,014,800 | 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 | 2,103,936 | 2,096,771 | 2,110,619 |
| Inventory | US$ in thousands | 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 | 181,922 | 193,952 | 170,589 |
| Inventory turnover | 11.10 | 9.08 | 8.48 | 10.54 | 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 | 11.57 | 10.81 | 12.37 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,182,700K ÷ $196,600K
= 11.10
Inventory turnover is a critical ratio that indicates how effectively a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory balance.
Analyzing HNI Corp's inventory turnover over the past few quarters, we observe fluctuations in the ratio. The inventory turnover has ranged from a low of 8.48 to a high of 13.78 over the last few quarters. A higher inventory turnover generally indicates that the company is selling its inventory more rapidly.
In the most recent quarter, ending December 31, 2023, the inventory turnover was 11.10, which indicates that HNI Corp turned over its inventory approximately 11.10 times during that period. This figure is relatively strong as it reflects efficient management of inventory levels and quick sales of products.
The trend in inventory turnover for HNI Corp indicates variability but generally remains at a level that suggests effective inventory management. It's important to closely monitor this ratio as it can signal operational efficiency and financial health within the company.