HNI Corp (HNI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 22,500 | 28,900 | 17,400 | 52,300 | 116,120 |
| Short-term investments | US$ in thousands | 6,400 | 5,600 | 2,000 | 1,400 | 1,687 |
| Receivables | US$ in thousands | — | 247,100 | 218,400 | 240,000 | 207,971 |
| Total current liabilities | US$ in thousands | 477,500 | 463,700 | 395,100 | 506,400 | 439,028 |
| Quick ratio | 0.06 | 0.61 | 0.60 | 0.58 | 0.74 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($22,500K
+ $6,400K
+ $—K)
÷ $477,500K
= 0.06
The quick ratio of HNI Corp, a measure of its ability to meet short-term obligations with its most liquid assets, has shown a decline over the years. As of December 31, 2020, the quick ratio stood at 0.74, which decreased to 0.58 by December 31, 2021. However, there was a slight improvement in the ratio to 0.60 by December 31, 2022, and further to 0.61 by December 31, 2023. The most significant drop occurred by the end of December 31, 2024, with the quick ratio plummeting to 0.06. This indicates a potential liquidity strain as the ratio is significantly below 1, suggesting that HNI Corp may have difficulty meeting its short-term obligations using its most liquid assets. Further examination of the company's current assets and liabilities is warranted to assess its liquidity position effectively.