HNI Corp (HNI)
Payables 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 |
| Payables | US$ in thousands | 190,400 | — | — | 193,700 | — | — | — | 165,300 | — | — | — | 233,800 | — | — | — | 190,527 | — | — | — | 227,557 |
| Payables turnover | 12.65 | — | — | 12.14 | — | — | — | 13.69 | — | — | — | 9.01 | — | — | — | 9.97 | — | — | — | 9.24 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,409,300K ÷ $190,400K
= 12.65
The payables turnover ratio is a measure of how efficiently a company is managing its trade credit obligations. It indicates how many times, on average, a company pays off its accounts payable during a certain period.
Analyzing the payables turnover ratio of HNI Corp based on the provided data reveals that there was a noticeable increase from 9.24 on December 31, 2019, to 9.97 on December 31, 2020. This suggests an improvement in the company's ability to settle its payables within a given timeframe.
Subsequently, the ratio decreased to 9.01 on December 31, 2021 and further dropped to 13.69 on December 31, 2022. The significant increase in the payables turnover ratio in 2022 indicates that HNI Corp was more efficient in managing its accounts payable during that year.
However, the ratio declined slightly to 12.14 on December 31, 2023 and then increased to 12.65 on December 31, 2024. These fluctuations in the payables turnover ratio reflect changes in the company's payables management and payment practices over the years.
Overall, the trend of the payables turnover ratio for HNI Corp fluctuated over the period analyzed, showing signs of both improvement and slight deterioration in managing its trade credit obligations effectively.