HNI Corp (HNI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 247,100 | 218,400 | 240,000 | 207,971 | 274,565 |
| Total current liabilities | US$ in thousands | 463,700 | 395,100 | 506,400 | 439,028 | 478,705 |
| Quick ratio | 0.61 | 0.60 | 0.58 | 0.74 | 0.68 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($28,900K
+ $5,600K
+ $247,100K)
÷ $463,700K
= 0.61
The quick ratio of HNI Corp over the past five years has exhibited a fluctuating trend, ranging from 0.58 to 0.74. This ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without relying on inventory sales, while a ratio above 1 signifies a stronger liquidity position.
In the current year, the quick ratio stands at 0.61, slightly higher than the previous year's ratio of 0.60. This suggests that HNI Corp has improved its ability to cover its short-term liabilities with its liquid assets. However, the ratio remains below 1, indicating that the company may still have some reliance on inventory to meet its short-term obligations.
It is important for investors and stakeholders to monitor the quick ratio trend over time to assess HNI Corp's liquidity position and ability to manage short-term financial commitments effectively. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's financial health and operational efficiency.