HNI Corp (HNI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover — — — 9.85 — — — 10.81 — — — 9.10 — — — 9.37 — — — 8.14
Payables turnover 12.65 — — 12.14 — — — 13.69 — — — 9.01 — — — 9.97 — — — 9.24
Working capital turnover 54.95 55.94 21.28 33.71 33.14 20.41 24.01 31.87 30.10 17.98 32.44 127.74 21.09 18.32 21.60 34.36 24.05 30.53 19.22 44.56

HNI Corp's inventory turnover ratio has shown a relatively stable trend over the periods, ranging from 9.20 to 13.78 times. This indicates that the company efficiently manages its inventory levels to meet customer demand, with an average turnover of around 11 times per year.

On the other hand, the company's receivables turnover ratio is more sporadic, with values only available for select periods. Receivables turnover ratio measures how efficiently a company collects its outstanding receivables. HNI Corp's ratio ranges from 8.14 to 10.81 for the available data points, showing a moderate efficiency in collecting receivables.

In terms of payables turnover, HNI Corp has a similar situation to receivables turnover, with data available for only a few periods. The payables turnover ratio indicates how quickly a company pays its suppliers. The company's payables turnover ratio ranges from 9.24 to 13.69, suggesting efficient management of payables, on average.

Lastly, HNI Corp's working capital turnover ratio portrays a fluctuating pattern, ranging from 17.98 to 127.74. This ratio reflects how effectively the company utilizes its working capital to generate sales. The company's performance varies significantly over the periods, indicating fluctuations in the efficiency of working capital management.

Overall, analyzing activity ratios provides insights into how well HNI Corp manages its inventory, receivables, payables, and working capital to support its operations and generate revenue.

Average number of days

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
Days of inventory on hand (DOH) days 29.44 31.00 31.74 30.51 37.17 39.68 31.93 29.04 35.13 36.00 34.34 31.48 33.67 35.06 30.12 26.49 27.39 28.33 29.38 28.39
Days of sales outstanding (DSO) days — — — 37.05 — — — 33.75 — — — 40.10 — — — 38.96 — — — 44.86
Number of days of payables days 28.84 — — 30.06 — — — 26.66 — — — 40.53 — — — 36.62 — — — 39.52

Based on the provided data for HNI Corp's activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH has shown some fluctuations over the years, ranging from a low of 26.49 days on December 31, 2020, to a high of 39.68 days on June 30, 2023.
- Generally, a lower DOH indicates that the company is managing its inventory efficiently and able to sell products quickly.

2. Days of Sales Outstanding (DSO):
- DSO data is incomplete as there are several periods where data is not available.
- DSO measures how quickly the company is able to collect cash from its customers.
- The available data suggests DSO was under 40 days most of the time, reaching 37.05 days on December 31, 2023.

3. Number of Days of Payables:
- Similar to DSO, data on the number of days of payables is also incomplete for several periods.
- Days of payables have ranged from 26.66 days on December 31, 2022, up to 40.53 days on December 31, 2021.
- A higher number of days of payables could indicate that the company is taking longer to pay its suppliers.

Overall, while the company seems to be managing its inventory efficiently with a generally low DOH, there are gaps in the data for DSO and payables, making a comprehensive analysis challenging. It would be beneficial to have complete data to evaluate the company's effectiveness in managing its receivables and payables processes.

Long-term

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
Fixed asset turnover 4.88 4.91 4.61 4.38 4.15 3.81 6.39 6.70 6.86 6.89 6.25 5.96 5.90 5.71 5.41 5.32 5.49 5.75 5.94 5.86
Total asset turnover 1.38 1.39 1.33 1.26 1.15 1.06 1.64 1.67 1.60 1.50 1.49 1.46 1.39 1.39 1.40 1.37 1.46 1.61 1.62 1.54

HNI Corp's fixed asset turnover ratio has displayed some fluctuations over the reported periods. The ratio started at a relatively high level of 5.86 on December 31, 2019, saw some fluctuations, and then witnessed an increasing trend until reaching its peak at 6.89 on June 30, 2022. However, after that point, the ratio started to decline steadily, dropping to 4.88 by December 31, 2024. Overall, the company's fixed asset turnover ratio demonstrates the efficiency of HNI Corp in generating sales revenue from its investment in fixed assets over time.

On the other hand, the total asset turnover ratio, which indicates how efficiently the company utilizes its total assets to generate sales, has also displayed fluctuations but generally follows a more stable pattern compared to the fixed asset turnover ratio. The ratio started at 1.54 on December 31, 2019, showed some variability, and peaked at 1.67 on December 31, 2022. However, after this point, the ratio started to decline, reaching 1.38 by December 31, 2024.

In summary, while HNI Corp's fixed asset turnover ratio fluctuated more significantly over the reported periods, the total asset turnover ratio showed a relatively stable trend with some fluctuations. Both ratios provide insights into the company's operational efficiency and asset utilization in generating sales revenue.