HNI Corp (HNI)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,582,500	2,651,600	2,542,900	2,434,000	2,323,100	2,210,300	2,268,500	2,361,700	2,395,700	2,383,600	2,272,400	2,184,393	2,136,642	2,057,005	1,963,961	1,948,372	2,000,722	2,119,093	2,225,230	2,233,871
Total current assets	US$ in thousands	524,500	561,700	527,200	535,900	572,400	597,700	447,100	469,200	540,000	624,700	532,920	523,500	595,462	563,198	485,572	495,735	500,435	430,994	481,387	528,834
Total current liabilities	US$ in thousands	477,500	514,300	407,700	463,700	502,300	489,400	352,600	395,100	460,400	492,100	462,861	506,400	494,144	450,899	394,657	439,028	417,240	361,592	365,615	478,705
Working capital turnover		54.95	55.94	21.28	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,582,500K ÷ ($524,500K – $477,500K)
= 54.95

The working capital turnover ratio of HNI Corp has shown fluctuations over the past few years, ranging from a low of 17.98 to a high of 127.74. A high ratio indicates that the company is efficiently managing its working capital to generate sales, while a lower ratio suggests that the company may be facing challenges in converting working capital into revenue.

From December 31, 2019, to September 30, 2020, there was a declining trend in the working capital turnover ratio, indicating a potential inefficiency in utilizing working capital during this period. However, from December 31, 2020, to September 30, 2021, there was a slight recovery in the ratio, suggesting improved efficiency in working capital management.

The ratio spiked significantly on December 31, 2021, reaching 127.74, which could be a result of a decrease in working capital or a significant increase in sales during that period. Subsequently, the ratio decreased over the following quarters but remained relatively stable within a reasonable range.

Overall, it is essential for HNI Corp to monitor its working capital turnover ratio consistently to ensure efficient management of its working capital in generating sales and sustaining financial performance.