HNI Corp (HNI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 761,400 | 616,500 | 589,600 | 590,419 | 584,044 |
| ROE | 6.46% | 20.10% | 10.14% | 7.10% | 18.92% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $49,200K ÷ $761,400K
= 6.46%
HNI Corp's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE decreased to 6.46% from 20.10% in 2022, indicating a significant decline in profitability. This decrease could be attributed to various factors such as changes in the company's financial structure, operational efficiency, or overall market conditions.
Comparing the latest ROE to previous years, it is evident that the company's profitability in 2023 was lower than in 2021 and 2019 but slightly higher than in 2020. This suggests that HNI Corp's ability to generate profits from shareholders' equity weakened in 2023 compared to recent years.
Overall, the trend in ROE for HNI Corp indicates variability in its profitability performance, highlighting the importance of monitoring key financial metrics to assess the company's financial health and management effectiveness. Further analysis and investigation into the factors influencing the ROE fluctuations are necessary to gain a deeper understanding of the company's financial performance.