HNI Corp (HNI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 22,500 | 34,300 | 27,000 | 28,900 | 24,400 | 23,800 | 16,800 | 17,400 | 21,100 | 19,600 | 23,483 | 52,300 | 126,436 | 118,498 | 94,281 | 116,120 | 109,385 | 26,204 | 35,413 | 52,073 |
| Short-term investments | US$ in thousands | 6,400 | 5,900 | 5,500 | 5,600 | 5,800 | 5,700 | 2,000 | 2,000 | 2,000 | 1,000 | 1,335 | 1,400 | 1,299 | 102 | 1,776 | 1,687 | 1,495 | 2,310 | 835 | 1,096 |
| 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 |
| Cash ratio | 0.06 | 0.08 | 0.08 | 0.07 | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 | 0.04 | 0.05 | 0.11 | 0.26 | 0.26 | 0.24 | 0.27 | 0.27 | 0.08 | 0.10 | 0.11 |
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 is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. From the data provided for HNI Corp, we observe fluctuations in the cash ratio over the years.
The cash ratio for HNI Corp ranged from 0.04 to 0.27 from December 31, 2019, to December 31, 2024. It started at a relatively low level of 0.11 as of December 31, 2019, indicating that the company had limited cash on hand compared to its current liabilities.
The ratio decreased to 0.04 as of June 30, 2022, reflecting a decrease in available cash relative to short-term obligations. This could raise concerns about the company's ability to meet its immediate financial obligations.
However, there was an increase in the cash ratio to 0.08 as of December 31, 2024, suggesting an improvement in the company's liquidity position. This could be indicative of better cash management practices or increased cash reserves during the period.
Overall, the varying levels of the cash ratio for HNI Corp over the years indicate fluctuations in the company's liquidity. It is essential for investors and stakeholders to monitor these changes to assess the company's ability to meet its short-term financial obligations.