HNI Corp (HNI)

Debt-to-capital ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	239,418	285,397	295,876
Total stockholders’ equity	US$ in thousands	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	560,022	529,184	544,927
Debt-to-capital ratio		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	0.30	0.35	0.35

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $428,300K ÷ ($428,300K + $761,400K)
= 0.36

The debt-to-capital ratio of HNI Corp has exhibited some fluctuations over the past five years. The ratio ranged from 0.22 to 0.46 during this period. It peaked at 0.46 in June 2023, indicating a higher level of debt relative to capital at that point. However, it decreased to 0.25 by December 2023, reflecting a reduction in the proportion of debt compared to capital.

Overall, the trend in the debt-to-capital ratio appears to have been relatively stable, with fluctuations within a moderate range. A lower ratio indicates a lesser reliance on debt financing, while a higher ratio suggests a greater proportion of debt in the capital structure. It is essential for stakeholders to monitor this ratio over time to assess the company's debt management and financial leverage position.