HNI Corp (HNI)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	32.88	40.20	43.06	34.62	29.04	35.13	36.00	34.34	31.48	33.67	35.06	30.12	26.49	27.39	28.33	29.38	28.39	31.56	33.76	29.50
Days of sales outstanding (DSO)	days	37.05	—	—	—	33.75	—	—	—	40.10	—	—	—	38.96	—	—	—	44.86	44.68	40.61	36.89
Number of days of payables	days	32.39	—	—	—	26.66	—	—	—	40.53	—	—	—	36.62	—	—	—	39.52	—	—	—
Cash conversion cycle	days	37.54	40.20	43.06	34.62	36.14	35.13	36.00	34.34	31.05	33.67	35.06	30.12	28.83	27.39	28.33	29.38	33.73	76.24	74.37	66.40

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.88 + 37.05 – 32.39
= 37.54

The cash conversion cycle of HNI Corp has fluctuated over the past few quarters, indicating changes in the efficiency of the company's cash management and working capital cycle.

In the most recent quarter, the cash conversion cycle was 37.54 days, showing a slight improvement from the previous quarter's 40.20 days. This suggests that the company was able to manage its cash, inventory, and receivables more effectively.

Looking back over the past few quarters, there have been periods of both increases and decreases in the cash conversion cycle. The cycle was relatively high in Q4 2019 and Q3 2019, at 76.24 days and 74.37 days, respectively, indicating potential issues with managing working capital efficiently during those periods.

Overall, the trend in the cash conversion cycle for HNI Corp shows variations in the speed at which the company is able to convert its investments in inventory and accounts receivable into cash. Continuous monitoring and improvement of the cash conversion cycle is essential for optimizing liquidity and operational efficiency.