HNI Corp (HNI)

Solvency ratios

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
Debt-to-assets ratio 0.16 0.15 0.24 0.22 0.24 0.29 0.15 0.13 0.13 0.19 0.16 0.12 0.11 0.12 0.12 0.12 0.13 0.14 0.17 0.12
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
Debt-to-equity ratio 0.35 0.35 0.60 0.56 0.67 0.84 0.34 0.31 0.33 0.55 0.41 0.30 0.28 0.28 0.28 0.30 0.30 0.33 0.41 0.30
Financial leverage ratio 2.23 2.26 2.48 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

The solvency ratios of HNI Corp indicate the company's ability to meet its long-term financial obligations.

- Debt-to-assets ratio: HNI Corp has maintained a fairly stable debt-to-assets ratio over the period, ranging between 0.11 to 0.29. A lower ratio suggests that the company relies less on debt to finance its assets.

- Debt-to-capital ratio: The debt-to-capital ratio fluctuated between 0.22 to 0.46, indicating the proportion of debt in the company's capital structure. A higher ratio suggests a higher level of financial risk as the company has more debt relative to its capital.

- Debt-to-equity ratio: HNI Corp's debt-to-equity ratio varied from 0.28 to 0.84, reflecting the extent to which the company is leveraged through debt. A higher ratio implies a higher financial risk, as the company relies more on debt financing compared to equity.

- Financial leverage ratio: The financial leverage ratio ranged from 2.23 to 2.90, indicating the proportion of the company's assets that are financed by debt. A higher ratio signifies a higher level of financial risk due to increased reliance on debt for funding operations.

Overall, HNI Corp's solvency ratios suggest a prudent level of debt utilization and financial leverage, with fluctuations observed over the period which may indicate changing financial strategies or business conditions. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its long-term financial obligations.

Coverage ratios

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
Interest coverage 6.64 5.82 3.74 3.54 4.15 8.35 14.86 17.66 17.63 11.59 11.27 11.94 14.62 17.17 15.54 8.78 13.18 14.83 14.43 16.40

The interest coverage ratio measures a company's ability to make interest payments on its debt obligations. A higher ratio indicates a stronger ability to meet interest expenses.

Analyzing HNI Corp's interest coverage ratio over the past few years, we observe fluctuations in the ratio.

From December 31, 2019, to June 30, 2021, the interest coverage remained relatively stable, ranging between 14.43 and 17.17. This suggests that HNI Corp had a comfortable buffer to cover its interest expenses during this period.

However, looking at the data from December 31, 2021, onwards, the interest coverage ratio started to decline. The ratio dropped to as low as 3.54 by December 31, 2023, indicating a significant decrease in HNI Corp's ability to cover its interest payments from its earnings during that period.

Although there was a slight improvement in the interest coverage ratio by December 31, 2024, reaching 6.64, it still remained below the levels seen in earlier years.

Overall, the trend in HNI Corp's interest coverage ratio suggests a period of decreasing ability to cover interest expenses, which may raise concerns about the company's ability to manage its debt obligations effectively in the future.