HNI Corp (HNI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 49,200 | 123,900 | 59,800 | 41,900 | 110,505 |
| Total assets | US$ in thousands | 1,928,800 | 1,414,500 | 1,497,900 | 1,418,000 | 1,452,510 |
| ROA | 2.55% | 8.76% | 3.99% | 2.95% | 7.61% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $49,200K ÷ $1,928,800K
= 2.55%
HNI Corp's return on assets (ROA) has varied significantly over the past five years. ROA measures a company's ability to generate earnings from its total assets.
In 2023, HNI Corp's ROA was 2.55%, a decrease from the previous year's ROA of 8.76%. This decline signals a decrease in the company's ability to generate profits relative to its total assets.
Comparing 2023 to 2021, HNI Corp's ROA increased from 3.99% to 2.55%, showing a drop in profitability. In 2020, the company's ROA was 2.95%, lower than the previous year but higher than the current year, indicating some fluctuation in performance.
The highest ROA in the data provided was in 2019 at 7.61%. This suggests that HNI Corp was most efficient in generating earnings from its assets in that year.
Overall, HNI Corp's ROA has shown variability over the years, with a noticeable decrease in 2023 compared to the previous year. It is essential for the company to evaluate the factors contributing to this decline and implement strategies to improve its asset utilization and profitability moving forward.