HNI Corp (HNI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 9.85 — — — 10.81 — — — 9.10 — — — 9.37 — — — 8.14 8.17 8.99 9.89
Payables turnover 11.27 — — — 13.69 — — — 9.01 — — — 9.97 — — — 9.24 — — —
Working capital turnover 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 26.10 25.09 20.00

HNI Corp's activity ratios provide insights into the efficiency of its operations.

- Inventory turnover: The company effectively manages its inventory, with a consistent range of 8 to 13 times turnover annually over the past five years. This indicates that HNI is efficiently converting its inventory into sales.

- Receivables turnover: HNI Corp collects its accounts receivable approximately 8 to 10 times a year, though data is missing for some quarters. A higher turnover ratio indicates that the company is efficient in collecting payments from customers.

- Payables turnover: The company pays its accounts payable approximately 9 to 14 times a year, based on available data. A higher turnover suggests that HNI Corp is managing its payables efficiently, possibly taking advantage of favorable credit terms.

- Working capital turnover: HNI Corp's working capital turnover has ranged from approximately 18 to 128 times over the past five years, indicating the company's ability to generate revenue relative to its working capital investment. Higher turnover ratios suggest efficient utilization of working capital.

Overall, HNI Corp demonstrates efficiency in managing its inventory, receivables, payables, and working capital, as reflected in its activity ratios. The company's consistent performance in these areas is essential for maintaining healthy liquidity and efficient operations.

Average number of days

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
Days of inventory on hand (DOH) days 32.88 40.20 43.06 34.62 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 31.56 33.76 29.50
Days of sales outstanding (DSO) days 37.05 — — — 33.75 — — — 40.10 — — — 38.96 — — — 44.86 44.68 40.61 36.89
Number of days of payables days 32.39 — — — 26.66 — — — 40.53 — — — 36.62 — — — 39.52 — — —

The Days of Inventory on Hand (DOH) for HNI Corp has ranged from 26.49 days to 43.06 days over the past year. The company's inventory turnover rate appears to fluctuate, with higher numbers indicating a quicker turnover of inventory and lower numbers suggesting slower movement of goods.

The Days of Sales Outstanding (DSO) data shows that the company takes between 33.75 days and 44.86 days to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, while a higher DSO suggests that it may be experiencing delays in receiving payments.

On the other hand, the Number of Days of Payables for HNI Corp ranges from 26.66 days to 40.53 days, showing how long the company takes to pay its suppliers. A longer payment period could indicate better cash flow management, but it could also signal strained relationships with suppliers if stretched too far.

Overall, these activity ratios provide insights into HNI Corp's management of inventory, accounts receivable, and accounts payable, highlighting the efficiency and effectiveness of its working capital management. These metrics can help assess the company's operational performance and its ability to convert assets into revenue.

Long-term

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
Fixed asset turnover 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 5.85 5.71 5.73
Total asset turnover 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 1.51 1.53 1.56

HNI Corp's long-term activity ratios provide insight into the efficiency of the company's utilization of assets over time. The fixed asset turnover ratio measures how well the company generates sales from its investment in fixed assets. The trend for HNI Corp's fixed asset turnover indicates some fluctuations but generally shows a stable performance, ranging from 3.81 to 6.89 over the last five quarters. The ratio averaged around 5.63 over this period, suggesting that, on average, the company generated $5.63 in sales for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets. HNI Corp's total asset turnover ratio trend also displays variability but maintains a relatively stable range, fluctuating between 1.06 and 1.67 in the last five quarters. The average total asset turnover ratio over this period was approximately 1.47, implying that the company generated $1.47 in sales for each dollar of total assets.

In conclusion, HNI Corp's long-term activity ratios suggest that the company is efficiently utilizing its assets to generate sales, with both fixed asset turnover and total asset turnover ratios showing consistent performance over the analyzed period.