HNI Corp (HNI)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 64,900 | 62,800 | 94,900 | 131,700 | 146,400 | 136,000 | 80,900 | 75,900 | 78,246 | 97,838 | 110,684 | 100,785 | 54,401 | 86,537 | 107,744 | 115,610 | 142,716 | 122,517 | 115,168 | 118,833 |
| Revenue (ttm) | US$ in thousands | 2,434,000 | 2,323,100 | 2,210,300 | 2,268,500 | 2,361,700 | 2,395,700 | 2,383,600 | 2,272,400 | 2,184,393 | 2,136,642 | 2,057,005 | 1,963,961 | 1,948,372 | 2,000,722 | 2,119,093 | 2,225,230 | 2,233,871 | 2,221,927 | 2,205,091 | 2,222,483 |
| Pretax margin | 2.67% | 2.70% | 4.29% | 5.81% | 6.20% | 5.68% | 3.39% | 3.34% | 3.58% | 4.58% | 5.38% | 5.13% | 2.79% | 4.33% | 5.08% | 5.20% | 6.39% | 5.51% | 5.22% | 5.35% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $64,900K ÷ $2,434,000K
= 2.67%
The pretax margin of HNI Corp has exhibited fluctuations over the past five years. The pretax margin is a measure of a company's operating efficiency and profitability before taxes, indicating the percentage of each dollar of revenue that translates into pretax income.
From March 2019 to March 2020, HNI Corp's pretax margin showed a decreasing trend, declining from 6.39% to 2.79%. However, from March 2020 to March 2023, there was a general upward trend in the pretax margin, indicating improving profitability. Notably, the pretax margin increased from 2.79% in March 2020 to 5.81% in March 2023, showcasing a significant improvement in profitability.
It is important to consider the reasons behind these fluctuations to fully assess the financial health of HNI Corp. The management's ability to control costs, generate revenue, and manage overall business operations plays a critical role in determining the pretax margin. More comprehensive analysis may be necessary to understand the specific factors driving the changes in pretax margin over the periods mentioned.