HNI Corp (HNI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 206,500 | 90,300 | 155,200 | 85,453 | 61,390 |
| Long-term debt | US$ in thousands | 294,300 | 428,300 | 188,800 | 174,600 | 174,524 |
| Total stockholders’ equity | US$ in thousands | 840,100 | 761,400 | 616,500 | 589,600 | 590,419 |
| Return on total capital | 18.20% | 7.59% | 19.27% | 11.18% | 8.03% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $206,500K ÷ ($294,300K + $840,100K)
= 18.20%
The return on total capital for HNI Corp has shown fluctuations over the years, with a notable increase from 2020 to 2022, reaching a peak of 19.27%. This indicates that the company has been able to generate a higher return relative to its total invested capital during these periods. However, there was a slight decrease in 2023 followed by a rebound in 2024 to 18.20%. Overall, the trend suggests that HNI Corp has been effectively utilizing its capital to generate returns, although there may have been some challenges in 2023. Additional analysis and context would be needed to fully understand the factors driving these fluctuations and to assess the sustainability of the company's return on total capital.