HNI Corp (HNI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 139,500 | 49,200 | 123,900 | 59,800 | 41,900 |
| Total assets | US$ in thousands | 1,875,100 | 1,928,800 | 1,414,500 | 1,497,900 | 1,418,000 |
| ROA | 7.44% | 2.55% | 8.76% | 3.99% | 2.95% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $139,500K ÷ $1,875,100K
= 7.44%
The return on assets (ROA) for HNI Corp has displayed fluctuations over the period from December 31, 2020, to December 31, 2024. The ROA increased from 2.95% in 2020 to 3.99% in 2021, indicating an improvement in the company's ability to generate profit relative to its total assets. Subsequently, there was a significant surge in ROA to 8.76% by the end of 2022, suggesting a notable increase in profitability efficiency during that period.
However, the ROA decreased to 2.55% by December 31, 2023, potentially signaling a decrease in the company's profitability relative to its asset base. In the most recent period reported, by December 31, 2024, the ROA rebounded to 7.44%, indicating a recovery in profitability efficiency.
Overall, the fluctuating trend in ROA for HNI Corp reflects changes in the company's performance in generating earnings from its assets. Understanding the factors driving these fluctuations can provide valuable insights into the company's operational efficiency and financial health.