HNI Corp (HNI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.96% | 35.35% | 34.67% | 37.01% | 37.25% |
| Operating profit margin | 3.71% | 6.57% | 3.91% | 3.15% | 6.76% |
| Pretax margin | 2.66% | 6.20% | 3.58% | 2.79% | 6.38% |
| Net profit margin | 2.02% | 5.25% | 2.74% | 2.15% | 4.94% |
HNI Corp's profitability ratios have shown fluctuations over the past five years. The gross profit margin has been on an upward trend, increasing from 34.67% in 2021 to 38.96% in 2023. This indicates an improvement in the company's efficiency in managing its production and operating costs.
However, the operating profit margin has shown a mixed performance, with a significant decline in 2021 followed by a partial recovery in 2022 and 2023. This suggests that while the company has been able to improve its gross profit margin, operating expenses have also played a significant role in determining the overall profitability.
The pretax margin has also been inconsistent, with fluctuations in profitability before accounting for taxes. The net profit margin, which reflects the company's bottom-line profitability after all expenses, has followed a similar pattern, albeit with lower percentages. This indicates that HNI Corp has been facing challenges in maintaining earnings growth after accounting for taxes and other expenses.
Overall, HNI Corp's profitability ratios reflect a mixed performance, with improvements in gross profit margins but challenges in managing operating expenses to maximize overall profitability. The company may benefit from a more focused approach to cost management and operational efficiency to enhance its bottom-line performance in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.68% | 10.97% | 5.70% | 4.33% | 10.42% |
| Return on assets (ROA) | 2.55% | 8.76% | 3.99% | 2.95% | 7.61% |
| Return on total capital | 7.59% | 19.27% | 11.18% | 8.03% | 19.95% |
| Return on equity (ROE) | 6.46% | 20.10% | 10.14% | 7.10% | 18.92% |
HNI Corp's profitability ratios show fluctuating performance over the years. The Operating Return on Assets (Operating ROA) decreased from 10.97% in 2022 to 4.68% in 2023, indicating a decline in the company's ability to generate profit from its assets through operations. Similarly, the Return on Assets (ROA) also decreased from 8.76% in 2022 to 2.55% in 2023, reflecting a decline in overall profitability relative to the total assets employed.
However, the Return on Total Capital increased from 19.27% in 2022 to 7.59% in 2023, indicating a higher return generated from the total capital invested in the business. This may suggest efficient utilization of both equity and debt in generating profits.
The Return on Equity (ROE) also decreased from 20.10% in 2022 to 6.46% in 2023, reflecting a lower return on shareholders' equity compared to the previous year. Overall, the fluctuating profitability ratios of HNI Corp indicate mixed performance in effectively generating profits relative to its assets, total capital, and equity over the years.