HNI Corp (HNI)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 90,300 | 155,200 | 85,400 | 61,400 | 151,342 |
| Revenue | US$ in thousands | 2,434,000 | 2,361,800 | 2,184,400 | 1,948,370 | 2,238,500 |
| Operating profit margin | 3.71% | 6.57% | 3.91% | 3.15% | 6.76% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $90,300K ÷ $2,434,000K
= 3.71%
The operating profit margin of HNI Corp has shown fluctuations over the past five years. In 2019, the company achieved a relatively high operating profit margin of 6.76%, indicating that a significant portion of its revenue was converted into operating profit. However, there was a notable decline in 2020 when the operating profit margin dropped to 3.15%. This could suggest challenges or increased costs impacting profitability in that year.
The company managed to improve its operating profit margin in 2021 to 3.91%, but it was still below the levels seen in 2019. The margin further increased in 2022 to 6.57%, showing a positive trend and a recovery in profitability. However, in 2023, the operating profit margin decreased to 3.71%, indicating a potential reversal in profitability or increased costs impacting the bottom line.
Overall, the fluctuation in HNI Corp's operating profit margin over the period reflects varying levels of operational efficiency and cost management within the organization. This metric is crucial in evaluating the company's ability to generate profits from its core business activities and warrants further analysis in conjunction with other financial ratios and contextual information to fully assess the company's financial performance.