HNI Corp (HNI)

Working capital turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	2,221,927	2,205,091	2,222,483
Total current assets	US$ in thousands	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	544,567	511,051	484,008
Total current liabilities	US$ in thousands	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	459,426	423,178	372,860
Working capital turnover		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	26.10	25.09	20.00

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,434,000K ÷ ($535,900K – $463,700K)
= 33.71

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to support its sales activities.

Analyzing the working capital turnover for HNI Corp over the past few periods reveals fluctuations in the efficiency of its working capital management. The ratio ranged from a low of 17.98 in June 2022 to a high of 127.74 in December 2021, showcasing significant variability in efficiency.

In recent quarters, the working capital turnover ratio has generally been above 20, indicating a relatively efficient use of working capital to generate sales. However, there was a noticeable drop in efficiency in the June 2023 and September 2023 quarters, with ratios of 20.41 and 21.09, respectively.

Overall, while HNI Corp has shown periods of strong efficiency in managing its working capital to support sales, there are also instances of lower efficiency. It is important for the company to closely monitor and actively manage its working capital to ensure optimal utilization and drive sustainable business performance in the long run.