HNI Corp (HNI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 428,300 | 188,800 | 174,600 | 174,524 | 174,439 |
| Total assets | US$ in thousands | 1,928,800 | 1,414,500 | 1,497,900 | 1,418,000 | 1,452,510 |
| Debt-to-assets ratio | 0.22 | 0.13 | 0.12 | 0.12 | 0.12 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $428,300K ÷ $1,928,800K
= 0.22
The debt-to-assets ratio for HNI Corp has been relatively stable over the past five years, ranging from 0.12 to 0.22. This ratio indicates the proportion of the company's assets financed by debt.
In 2023, the debt-to-assets ratio increased to 0.22, reflecting a higher level of debt compared to the previous year. This increase suggests that a higher portion of the company's assets are now being financed by debt, which could indicate increased borrowing or decreased asset levels.
Overall, the upward trend in the debt-to-assets ratio over the years may indicate a shift towards a more leveraged capital structure. It is essential for stakeholders to monitor this ratio closely as higher levels of debt may increase the company's financial risk and impact its ability to meet financial obligations in the long run.