HNI Corp (HNI)
Working capital 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 |
| Total current assets | US$ in thousands | 535,900 | 469,200 | 523,500 | 495,735 | 528,834 |
| Total current liabilities | US$ in thousands | 463,700 | 395,100 | 506,400 | 439,028 | 478,705 |
| Working capital turnover | 33.71 | 31.87 | 127.74 | 34.36 | 44.65 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,434,000K ÷ ($535,900K – $463,700K)
= 33.71
The working capital turnover ratio for HNI Corp has shown fluctuations over the past five years. In 2023, the ratio increased to 33.71 from 31.87 in 2022. This indicates that the company generated $33.71 in net revenue for every dollar invested in working capital in 2023, showing an improvement in efficiency in utilizing its working capital.
The significant increase in working capital turnover in 2021 to 127.74 indicates that the company was highly efficient in generating revenue from its working capital that year. However, this exceptionally high ratio may be an outlier or could be influenced by specific factors affecting that particular year.
In 2020 and 2019, the working capital turnover ratios were 34.36 and 44.65, respectively. These ratios indicate that the company was able to generate $34.36 and $44.65 in net revenue for each dollar invested in working capital in those years, showing a relatively consistent level of efficiency in utilizing its working capital.
Overall, the trend in the working capital turnover ratio for HNI Corp indicates varying levels of efficiency in utilizing its working capital to generate revenue over the past five years, with the company showing some improvements in 2023 compared to the previous year.