HNI Corp (HNI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 183,900 | 186,100 | 113,600 | 90,300 | 82,600 | 107,700 | 141,200 | 155,200 | 144,100 | 88,400 | 83,200 | 85,400 | 105,024 | 117,586 | 107,728 | 61,400 | 93,637 | 115,531 | 124,218 | 151,981 |
| Long-term debt | US$ in thousands | 294,300 | 294,500 | 460,200 | 428,300 | 493,200 | 597,100 | 206,300 | 188,800 | 199,700 | 308,700 | 240,929 | 174,600 | 174,587 | 174,566 | 174,545 | 174,524 | 174,502 | 183,481 | 228,460 | 174,439 |
| Total stockholders’ equity | US$ in thousands | 840,100 | 846,600 | 771,500 | 761,400 | 740,800 | 715,000 | 612,800 | 616,500 | 606,100 | 561,700 | 581,718 | 589,600 | 629,384 | 634,460 | 617,436 | 590,419 | 573,269 | 552,747 | 551,332 | 584,044 |
| Return on total capital | 16.21% | 16.31% | 9.22% | 7.59% | 6.69% | 8.21% | 17.24% | 19.27% | 17.88% | 10.16% | 10.11% | 11.18% | 13.06% | 14.53% | 13.60% | 8.03% | 12.52% | 15.69% | 15.93% | 20.04% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $183,900K ÷ ($294,300K + $840,100K)
= 16.21%
HNI Corp's return on total capital has displayed fluctuations over the period under review, ranging from a high of 20.04% on December 31, 2019, to a low of 6.69% on September 30, 2023. The company's return on total capital gradually decreased from 20.04% in December 2019 to 8.03% by the end of December 2020 before showing some recovery in the following quarters.
The return on total capital improved to 17.88% by September 30, 2022, reaching its peak at 19.27% by the end of December 2022. However, the trend reversed again with performance dropping to 6.69% on September 30, 2023, before rebounding for the remainder of the period. As of December 31, 2024, HNI Corp's return on total capital stood at 16.21%.
Overall, the company's return on total capital has demonstrated variability, reflecting changes in profitability and capital efficiency during the period. It is important for stakeholders to closely monitor these fluctuations in return on total capital to assess HNI Corp's operational efficiency and financial performance.