HNI Corp (HNI)

Solvency ratios

	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
Debt-to-assets ratio	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	0.16	0.20	0.21
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
Debt-to-equity ratio	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	0.43	0.54	0.54
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

The solvency ratios of HNI Corp show a mixed trend over the past few quarters. The debt-to-assets ratio has fluctuated within a relatively narrow range, with a low of 0.11 in Q3 2021 and a high of 0.29 in Q2 2023. This ratio indicates the proportion of the company's assets funded by debt, with lower values generally considered favorable.

The debt-to-capital ratio has also varied, ranging from 0.22 to 0.46. This ratio reflects the proportion of the company's capital structure that is debt-financed. Higher values suggest a greater reliance on debt for funding operations.

The debt-to-equity ratio has shown more significant fluctuations, with values ranging from 0.28 to 0.84. This ratio compares the company's total debt to its shareholder equity, indicating the level of financial leverage. Lower values are typically preferable as they suggest lower financial risk.

The financial leverage ratio, which measures the company's total assets relative to its equity, has displayed fluctuations from 2.26 to 2.90. A higher ratio indicates higher financial risk and dependency on debt financing.

Overall, it is essential for HNI Corp to closely monitor and manage its solvency ratios to maintain a healthy financial position and ensure sustainable growth.

Coverage ratios

	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
Interest coverage	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	14.28	12.97	13.41

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Analyzing the interest coverage ratios of HNI Corp over the past five quarters, we observe a fluctuating trend. The interest coverage ratio has ranged from a low of 3.54 in December 2023 to a high of 17.66 in December 2022. This fluctuation may indicate variations in the company's earnings and its ability to cover interest expenses comfortably.

It is worth noting that a ratio above 1 indicates that the company is generating enough operating income to cover interest expenses. HNI Corp's interest coverage ratios have consistently been well above 1, suggesting that the company has been able to meet its interest obligations comfortably.

Overall, HNI Corp's interest coverage ratios demonstrate a satisfactory ability to cover its interest expenses, with some fluctuations over the quarters. A higher interest coverage ratio provides creditors with a sense of security regarding the company's ability to fulfill its debt obligations.