HNI Corp (HNI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,434,000 | 2,361,800 | 2,184,400 | 1,948,370 | 2,238,500 |
| Receivables | US$ in thousands | 247,100 | 218,400 | 240,000 | 207,971 | 274,565 |
| Receivables turnover | 9.85 | 10.81 | 9.10 | 9.37 | 8.15 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,434,000K ÷ $247,100K
= 9.85
The receivables turnover ratio for HNI Corp has shown fluctuation over the past five years, with values ranging from 8.15 to 10.81. The ratio indicates how efficiently the company is collecting payments from its customers. A higher turnover ratio generally reflects a more efficient collection process, as the company is collecting receivables more quickly.
In 2023, the receivables turnover ratio decreased to 9.85 from 10.81 in 2022, indicating a slight decrease in the efficiency of collecting payments from customers. This could be a sign of slower collections or an increase in outstanding receivables which could potentially impact the company's cash flow.
Despite the decrease in 2023, the company's receivables turnover ratio has generally remained above 9 in the past five years, indicating effective management of accounts receivable. It is important for HNI Corp to continue monitoring and managing its accounts receivable effectively to ensure healthy cash flows and overall financial stability.