HNI Corp (HNI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,928,800 | 1,414,500 | 1,497,900 | 1,418,000 | 1,452,510 |
| Operating ROA | 4.68% | 10.97% | 5.70% | 4.33% | 10.42% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $90,300K ÷ $1,928,800K
= 4.68%
The trend in HNI Corp's operating return on assets (operating ROA) over the past five years shows some fluctuation. In 2023, the operating ROA decreased to 4.68% from 10.97% in 2022, reflecting a significant decline. This decline may raise concerns about the company's operational efficiency and profitability in the most recent year.
Comparing the 2023 figure to 2021 and 2020, when the operating ROA was 5.70% and 4.33% respectively, the current level of 4.68% is lower and indicates a weaker performance in generating operating profits relative to its total assets.
However, when looking at 2019, where the operating ROA was 10.42%, the current 2023 figure of 4.68% indicates a notable drop over the five-year period.
Overall, the decreasing trend in operating ROA from 2022 to 2023 warrants further analysis to understand the factors contributing to the decline in operational efficiency and profitability at HNI Corp.