HNI Corp (HNI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,526,400 | 2,434,000 | 2,361,800 | 2,184,400 | 1,948,370 |
| Total assets | US$ in thousands | 1,875,100 | 1,928,800 | 1,414,500 | 1,497,900 | 1,418,000 |
| Total asset turnover | 1.35 | 1.26 | 1.67 | 1.46 | 1.37 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,526,400K ÷ $1,875,100K
= 1.35
Total asset turnover is a financial ratio that indicates how efficiently a company is using its assets to generate revenue. It measures the amount of revenue generated for each dollar of assets the company holds.
Based on the data provided for HNI Corp:
- In December 2020, the total asset turnover was 1.37, indicating that for every dollar of assets, the company generated $1.37 in revenue.
- By December 2021, the total asset turnover increased to 1.46, suggesting improved asset utilization and revenue generation efficiency.
- Further improvement was seen by December 2022, with a total asset turnover ratio of 1.67, indicating that the company was generating $1.67 in revenue for every dollar of assets held.
- However, by December 2023, the total asset turnover ratio dropped to 1.26, which could signal a decrease in efficiency in utilizing assets to generate revenue.
- In the latest period, December 2024, the total asset turnover ratio rebounded to 1.35, showing some recovery in asset utilization efficiency.
Overall, the total asset turnover trend for HNI Corp fluctuated over the years, with periods of improvement and decline. It is essential for the company to monitor and manage its asset efficiency to ensure optimal revenue generation relative to its asset base.