HNI Corp (HNI)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | 247,100 | — | — | — | 218,400 | — | — | — | 240,000 | — | — | — | 207,971 | — | — | — | 274,565 |
| 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 |
| Quick ratio | 0.06 | 0.08 | 0.08 | 0.61 | 0.06 | 0.06 | 0.05 | 0.60 | 0.05 | 0.04 | 0.05 | 0.58 | 0.26 | 0.26 | 0.24 | 0.74 | 0.27 | 0.08 | 0.10 | 0.68 |
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, which measures the company's ability to meet its short-term obligations with its most liquid assets, has displayed some fluctuations over the years.
At the end of December 2019, the quick ratio was 0.68, indicating that the company had $0.68 of liquid assets available for every $1 of current liabilities. This ratio dropped significantly by March 2020 to 0.10, suggesting a potential liquidity issue during that period.
Throughout the subsequent quarters of 2020 and into early 2021, the quick ratio remained very low, hovering in the range of 0.08 to 0.27, indicating a challenge in meeting short-term obligations with available liquid assets.
The quick ratio improved towards the end of 2021, reaching 0.58 by December 31, 2021. However, it dipped back down to 0.05 by March 2022, showing a significant decline in liquidity.
The ratio gradually increased in the following quarters, with slight fluctuations, reaching 0.61 by December 31, 2023. Subsequently, the quick ratio improved further to 0.08 by March 31, 2024, and remained stable at 0.08 by September 30, 2024, and 0.06 by December 31, 2024.
Overall, the quick ratio of HNI Corp has shown some volatility, with periods of both strong and weak liquidity positions. Management may need to closely monitor liquidity levels to ensure the company can meet its short-term obligations effectively.