HNI Corp (HNI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 22,500 | 28,900 | 17,400 | 52,300 | 116,120 |
| Short-term investments | US$ in thousands | 6,400 | 5,600 | 2,000 | 1,400 | 1,687 |
| Total current liabilities | US$ in thousands | 477,500 | 463,700 | 395,100 | 506,400 | 439,028 |
| Cash ratio | 0.06 | 0.07 | 0.05 | 0.11 | 0.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($22,500K
+ $6,400K)
÷ $477,500K
= 0.06
The cash ratio of HNI Corp has shown a declining trend over the past five years, dropping from 0.27 in December 2020 to 0.06 in December 2024. This indicates that the company's ability to cover its short-term liabilities with its cash holdings has weakened over this period. Despite the fluctuations, the cash ratio has generally stayed below 1, suggesting that a significant portion of the company's assets is tied up in non-cash form. It is important to closely monitor this ratio to ensure that HNI Corp maintains a healthy level of liquidity to meet its financial obligations effectively.