HNI Corp (HNI)
Working capital 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 current assets | US$ in thousands | 524,500 | 535,900 | 469,200 | 523,500 | 495,735 |
| Total current liabilities | US$ in thousands | 477,500 | 463,700 | 395,100 | 506,400 | 439,028 |
| Working capital turnover | 53.75 | 33.71 | 31.87 | 127.74 | 34.36 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,526,400K ÷ ($524,500K – $477,500K)
= 53.75
The working capital turnover ratio for HNI Corp has shown some fluctuations over the last five years.
- In 2020, the ratio stood at 34.36, indicating that the company was generating $34.36 in revenue for every dollar of working capital investment.
- This ratio significantly improved in 2021 to 127.74, suggesting a more efficient utilization of working capital in generating sales.
- However, there was a decrease in 2022, with the ratio dropping to 31.87, which could indicate a potential inefficiency in managing working capital.
- The ratio slightly increased in 2023 to 33.71, showing a slight improvement in working capital efficiency.
- In 2024, there was a notable increase in the ratio to 53.75, indicating that the company improved its working capital turnover significantly compared to the previous year.
It is essential for HNI Corp to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and maintain efficient operations. Fluctuations in this ratio can provide insights into the company's liquidity management and operational efficiency.