HNI Corp (HNI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 28,900 | 17,400 | 52,300 | 116,120 | 52,073 |
| Short-term investments | US$ in thousands | 5,600 | 2,000 | 1,400 | 1,687 | 1,096 |
| Total current liabilities | US$ in thousands | 463,700 | 395,100 | 506,400 | 439,028 | 478,705 |
| Cash ratio | 0.07 | 0.05 | 0.11 | 0.27 | 0.11 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($28,900K
+ $5,600K)
÷ $463,700K
= 0.07
The cash ratio of HNI Corp has fluctuated over the past five years, ranging from 0.05 to 0.27. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In 2020, the cash ratio was the highest at 0.27, suggesting that the company had a significant amount of cash on hand relative to its short-term liabilities. This could indicate strong liquidity and financial stability during that period.
The cash ratio dropped to 0.11 in 2021 and then increased again to 0.11 in 2019. This fluctuation may indicate some variability in the company's cash position and liquidity over these years.
In 2023, the cash ratio decreased to 0.07. This decline may raise concerns about the company's ability to cover its short-term obligations with its available cash, compared to the previous years.
Overall, the trend in the cash ratio of HNI Corp shows some variability, with fluctuations in the company's ability to cover its short-term liabilities with its cash holdings. It would be important to further analyze the company's cash management and liquidity position to better understand the factors driving these changes in the cash ratio.