HNI Corp (HNI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,875,100 | 1,928,800 | 1,414,500 | 1,497,900 | 1,418,000 |
| Total stockholders’ equity | US$ in thousands | 840,100 | 761,400 | 616,500 | 589,600 | 590,419 |
| Financial leverage ratio | 2.23 | 2.53 | 2.29 | 2.54 | 2.40 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,875,100K ÷ $840,100K
= 2.23
The financial leverage ratio of HNI Corp, which measures the company's level of debt in relation to its equity, has shown some fluctuations over the years. As of December 31, 2020, the ratio stood at 2.40, indicating that the company had $2.40 in debt for every $1 of equity.
By the end of 2021, the financial leverage ratio had increased to 2.54, suggesting a slight increase in the company's leverage. However, in 2022, the ratio decreased to 2.29, signaling a reduction in the level of debt relative to equity.
In 2023, the financial leverage ratio went up again to 2.53, approaching the level seen in 2021. However, by December 31, 2024, the ratio dropped to 2.23, indicating that the company had decreased its reliance on debt compared to equity.
Overall, the financial leverage ratio of HNI Corp has exhibited variability over the analyzed period, with both increases and decreases in the level of debt in relation to equity. This suggests that the company's capital structure has been subject to fluctuations, which may have implications for its financial risk and stability.