HNI Corp (HNI)
Payables 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 |
| Payables | US$ in thousands | 190,400 | 193,700 | 165,300 | 233,800 | 190,527 |
| Payables turnover | 12.24 | 12.14 | 13.69 | 9.01 | 9.97 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,330,400K ÷ $190,400K
= 12.24
The payables turnover ratio for HNI Corp has shown fluctuations over the last five years. It went from 9.97 in December 2020 to 9.01 in December 2021, before experiencing a notable increase to 13.69 in December 2022. In the subsequent years, the ratio remained relatively stable at 12.14 in December 2023 and 12.24 in December 2024. Overall, the payables turnover ratio indicates how efficiently the company is managing its accounts payable by comparing the purchases made on credit to the average accounts payable outstanding during a period. HNI Corp's increasing payables turnover ratio suggests that the company is improving its ability to settle its payables quickly, which can be a positive sign of operational efficiency and liquidity management.