HNI Corp (HNI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 535,900 | 469,200 | 523,500 | 495,735 | 528,834 |
| Total current liabilities | US$ in thousands | 463,700 | 395,100 | 506,400 | 439,028 | 478,705 |
| Current ratio | 1.16 | 1.19 | 1.03 | 1.13 | 1.10 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $535,900K ÷ $463,700K
= 1.16
The current ratio of HNI Corp has been fluctuating over the past five years. The current ratio measures the company's ability to meet its short-term obligations using its current assets.
In 2023, the current ratio stands at 1.16, slightly lower than the previous year's ratio of 1.19. This indicates that the company may have slightly less liquidity to cover its current liabilities compared to the previous year.
However, it is important to note that the current ratio of 1.16 is still above 1, which generally suggests that HNI Corp has sufficient current assets to cover its current liabilities. A ratio above 1 indicates that the company has more current assets than current liabilities, providing a buffer in case of unexpected financial needs.
Looking back at the trend over the past five years, the current ratio has generally been above 1, indicating a consistent ability to meet short-term obligations. The fluctuations in the ratio may be influenced by changes in the company's current assets and liabilities.
Overall, while the current ratio has decreased slightly in 2023 compared to the previous year, HNI Corp still appears to have a relatively healthy liquidity position to meet its short-term obligations. Investors and stakeholders may continue to monitor the company's liquidity position to ensure ongoing financial stability.