HNI Corp (HNI)

Financial leverage 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
Total assets	US$ in thousands	1,928,800	2,017,000	2,075,600	1,382,800	1,414,500	1,498,600	1,586,700	1,525,000	1,497,900	1,534,370	1,477,190	1,405,580	1,418,000	1,374,720	1,315,360	1,369,900	1,452,510	1,470,480	1,442,110	1,423,400
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
Financial leverage ratio		2.53	2.72	2.90	2.26	2.29	2.47	2.82	2.62	2.54	2.44	2.33	2.28	2.40	2.40	2.38	2.48	2.49	2.63	2.73	2.61

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,928,800K ÷ $761,400K
= 2.53

The financial leverage ratio of HNI Corp has shown some fluctuations over the past five years, ranging between 2.26 to 2.90. This ratio measures the extent to which the company relies on debt financing in relation to its equity. A higher financial leverage ratio indicates a higher level of debt relative to equity.

The trend in HNI Corp's financial leverage ratio indicates some variability in the company's capital structure over time. In recent quarters, the ratio has been decreasing from a peak of 2.90 in June 2023 to 2.53 in December 2023. This suggests a potential decrease in the company's reliance on debt financing or an increase in equity relative to debt.

The financial leverage ratio of 2.53 as of December 31, 2023, implies that for every dollar of equity, the company has $2.53 of debt. It is important for investors and analysts to monitor changes in this ratio, as a high ratio could indicate increased financial risk, while a low ratio may suggest underutilization of debt capital.