HNI Corp (HNI)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 64,800 | 146,400 | 78,300 | 54,400 | 142,716 |
| Revenue | US$ in thousands | 2,434,000 | 2,361,800 | 2,184,400 | 1,948,370 | 2,238,500 |
| Pretax margin | 2.66% | 6.20% | 3.58% | 2.79% | 6.38% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $64,800K ÷ $2,434,000K
= 2.66%
HNI Corp's pretax margin has displayed fluctuating trends over the past five years. The company's pretax margin stood at 2.66% in 2023, a decrease from the previous year's level of 6.20%. This decline suggests that the company's ability to generate profits before accounting for taxes has weakened in the most recent year. Comparing to historical data, the pretax margin in 2023 is below the levels seen in 2022 and 2019 when it was 6.20% and 6.38% respectively. Despite the decline, the pretax margin in 2023 is still higher than the levels recorded in 2021 (3.58%) and 2020 (2.79%). The downward trend in pretax margin may indicate potential challenges in controlling costs or maintaining profitability, which warrants further investigation and attention from stakeholders.