HNI Corp (HNI)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 53,013 | 28,782 | 47,872 |
| Short-term investments | US$ in thousands | 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 | 848 | 1,668 | 1,705 |
| Receivables | US$ in thousands | 247,100 | — | — | — | 218,400 | — | — | — | 240,000 | — | — | — | 207,971 | — | — | — | 274,565 | 271,960 | 245,331 | 224,650 |
| Total current liabilities | US$ in thousands | 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 | 459,426 | 423,178 | 372,860 |
| Quick ratio | 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 | 0.71 | 0.65 | 0.74 |
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, also known as the Acid-Test Ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.
Looking at the Quick Ratio of HNI Corp over the past few quarters, we observe significant fluctuations. The Quick Ratio has ranged from a low of 0.04 to a high of 0.74. This indicates a varying ability to cover immediate liabilities with its liquid assets.
In the most recent period, the Quick Ratio stands at 0.61, showing an improvement from the previous quarter. However, it is essential to note the substantial decline in the Quick Ratio in the third quarter of 2023 to 0.06, which raises concerns about the company's liquidity position during that period.
Overall, the Quick Ratio of HNI Corp displays volatility, suggesting fluctuations in the availability of liquid assets to cover short-term obligations. Further analysis of the company's cash flow and working capital management practices may provide more insights into its liquidity position.