HNI Corp (HNI)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.26	0.26	0.37	0.36	0.40	0.46	0.25	0.23	0.25	0.35	0.29	0.23	0.22	0.22	0.22	0.23	0.23	0.25	0.29	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 has fluctuated over the periods analyzed. It started at 0.23 as of December 31, 2019, increased to 0.35 by June 30, 2022, dropped to 0.26 on December 31, 2024. The ratio generally remained within a relatively stable range between 0.22 and 0.37 over the reporting periods, with occasional spikes and dips. A debt-to-capital ratio of less than 0.50 indicates that the company's debt levels are relatively low compared to its total capital, implying a lower financial risk. However, the higher ratios observed in some periods might suggest increased reliance on debt financing, which could potentially raise concerns about the company's financial leverage and ability to service its debt obligations.