HNI Corp (HNI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.90% | 38.96% | 35.35% | 34.67% | 37.01% |
| Operating profit margin | 8.17% | 3.71% | 6.57% | 3.91% | 3.15% |
| Pretax margin | 7.10% | 2.66% | 6.20% | 3.58% | 2.79% |
| Net profit margin | 5.52% | 2.02% | 5.25% | 2.74% | 2.15% |
HNI Corp's profitability ratios reflect varying levels of performance over the years.
1. Gross Profit Margin:
- The gross profit margin declined from 37.01% in 2020 to 34.67% in 2021, but has shown improvement since then, reaching 40.90% in 2024. This indicates the company's ability to control the cost of goods sold and generate higher profits on sales.
2. Operating Profit Margin:
- HNI Corp's operating profit margin fluctuated over the years, with a significant increase from 3.15% in 2020 to 8.17% in 2024. This demonstrates the company's efficiency in managing its operating expenses and improving operational profitability.
3. Pretax Margin:
- The pretax margin also displayed variability, with notable growth from 2.79% in 2020 to 7.10% in 2024. This indicates the company's ability to enhance its pre-tax profitability, potentially through improved revenue generation or cost management.
4. Net Profit Margin:
- HNI Corp's net profit margin exhibited fluctuations, with a peak of 5.52% in 2024. Despite experiencing some variability, the company managed to increase its net profitability over the years, reflecting its ability to generate higher net income relative to its revenue.
In conclusion, while HNI Corp faced some fluctuations in profitability ratios, overall trends show improvements in operational efficiency and profitability over the years, especially in later periods such as 2023 and 2024.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.01% | 4.68% | 10.97% | 5.70% | 4.33% |
| Return on assets (ROA) | 7.44% | 2.55% | 8.76% | 3.99% | 2.95% |
| Return on total capital | 18.20% | 7.59% | 19.27% | 11.18% | 8.03% |
| Return on equity (ROE) | 16.61% | 6.46% | 20.10% | 10.14% | 7.10% |
HNI Corp has shown improvement in profitability ratios over the five-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA) has notably increased from 4.33% in 2020 to 11.01% in 2024. This ratio indicates the company's ability to generate profit from its operational assets, and the upward trend suggests efficient asset utilization and operational performance.
2. Return on Assets (ROA) has also exhibited a positive trend, rising from 2.95% in 2020 to 7.44% in 2024. ROA reflects the company's overall profitability relative to its total assets, and the increasing trend indicates improved efficiency in utilizing assets to generate earnings.
3. Return on Total Capital has shown significant improvement, increasing from 8.03% in 2020 to 18.20% in 2024. This ratio evaluates the company's profitability in relation to its total capital employed, including debt and equity. The rising trend suggests efficient capital deployment and enhanced financial performance.
4. Return on Equity (ROE) has also seen a positive trajectory, climbing from 7.10% in 2020 to 16.61% in 2024. ROE measures the return generated on shareholders' equity, and the increasing trend indicates enhanced profitability and value creation for equity shareholders.
Overall, HNI Corp has demonstrated positive profitability trends across all key ratios, reflecting improved operational efficiency, effective asset utilization, and enhanced financial performance over the five-year period.