HNI Corp (HNI)
Payables 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 |
| Payables | US$ in thousands | 193,700 | 165,300 | 233,800 | 190,527 | 227,557 |
| Payables turnover | 12.14 | 13.69 | 9.01 | 9.97 | 9.24 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,352,200K ÷ $193,700K
= 12.14
The payables turnover ratio measures how efficiently a company is managing its payables by evaluating how many times a company pays off its average accounts payable balance during a specific period.
Looking at HNI Corp's payables turnover over the past five years, we can see fluctuations in the ratio. In 2023, the company's payables turnover decreased to 12.14 from 13.69 in 2022, indicating that the company took a longer time to pay off its accounts payable in 2023 compared to the previous year.
Despite the decrease in 2023, the payables turnover ratio still remained relatively high, indicating that HNI Corp had a strong ability to manage and pay off its accounts payable efficiently. Comparing to 2021 and 2020 when the ratio was 9.01 and 9.97 respectively, the company showed an improvement in managing its payables in 2022 and 2023.
Further analysis would be needed to understand the reasons for the fluctuations in the payables turnover ratio and how it aligns with the company's overall financial strategy and industry standards.