HNI Corp (HNI)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.26 | 0.36 | 0.23 | 0.23 | 0.23 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $294,300K ÷ ($294,300K + $840,100K)
= 0.26
The debt-to-capital ratio of HNI Corp remained relatively stable around 0.23 from December 31, 2020, to December 31, 2022. This indicates that the company's debt level was consistently at 23% of its capital during this period. However, there was a notable increase in the ratio to 0.36 as of December 31, 2023, suggesting a higher proportion of debt relative to capital at that point. The ratio then decreased to 0.26 by December 31, 2024, indicating some improvement in the company's debt-to-capital position compared to the previous year. Overall, fluctuations in the debt-to-capital ratio can reflect changes in the company's financing decisions and risk profile over time.