HNI Corp (HNI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 524,500 | 535,900 | 469,200 | 523,500 | 495,735 |
| Total current liabilities | US$ in thousands | 477,500 | 463,700 | 395,100 | 506,400 | 439,028 |
| Current ratio | 1.10 | 1.16 | 1.19 | 1.03 | 1.13 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $524,500K ÷ $477,500K
= 1.10
Based on the provided data, the current ratio of HNI Corp has fluctuated over the past five years. The current ratio decreased from 1.13 as of December 31, 2020, to 1.03 as of December 31, 2021. However, it then improved to 1.19 by December 31, 2022, and further to 1.16 by December 31, 2023. Subsequently, it decreased slightly to 1.10 by December 31, 2024.
The current ratio is a measure of a company's ability to cover its short-term liabilities with its short-term assets. A current ratio above 1 indicates that the company has more current assets than current liabilities. The trend observed in HNI Corp's current ratio suggests some fluctuations in its short-term liquidity position over the past five years. It would be important to further analyze the underlying reasons for these fluctuations to assess the company's overall liquidity management.