HNI Corp (HNI)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 761,400 | 616,500 | 589,600 | 590,419 | 584,044 |
| Debt-to-equity ratio | 0.56 | 0.31 | 0.30 | 0.30 | 0.30 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $428,300K ÷ $761,400K
= 0.56
The debt-to-equity ratio of HNI Corp has shown an increasing trend over the past five years, starting at 0.30 in 2019 and rising to 0.56 in 2023. This indicates that the company has been relying more on debt financing relative to equity financing during this period.
In 2022, the ratio significantly increased to 0.31, and further rose to 0.56 in 2023, which suggests a substantial increase in the proportion of debt in the company's capital structure. However, it is important to note that a higher debt-to-equity ratio can also indicate increased financial leverage and risk for the company.
Overall, the increasing trend in the debt-to-equity ratio of HNI Corp may signal a shift towards a more debt-heavy capital structure, potentially raising concerns about the company's financial risk and leverage levels. It would be essential for stakeholders to further investigate the reasons behind this trend and assess the company's ability to manage its debt obligations effectively in the future.