HNI (HNI) Interest Coverage

: 7.76 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. HNI's Operating Income for the three months ended in Dec. 2023 was $62 Mil. HNI's Interest Expense for the three months ended in Dec. 2023 was $-8 Mil. HNI's interest coverage for the quarter that ended in Dec. 2023 was 7.76. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for HNI's Interest Coverage or its related term are showing as below:

HNI' s Interest Coverage Range Over the Past 10 Years
Min: 5.27 Med: 15.72 Max: 32.89
Current: 5.27

HNI's Interest Coverage is ranked worse than
71.17% of 2303 companies
in the Industrial Products industry
Industry Median: 13.48 vs HNI: 5.27

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

HNI Interest Coverage Historical Data

The historical data trend for HNI's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

HNI Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

17.82

14.31

12.75

12.67

5.30

HNI Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																12.52	2.37	0.82	6.60	7.76

Competitive Comparison

For the Business Equipment & Supplies subindustry, HNI's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

HNI Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, HNI's Interest Coverage distribution charts can be found below:

* The bar in red indicates where HNI's Interest Coverage falls into.

HNI Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

HNI's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, HNI's Interest Expense was $-26 Mil. Its Operating Income was $135 Mil. And its Long-Term Debt & Capital Lease Obligation was $540 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	135.1	/	-25.5
	=	5.30

HNI's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, HNI's Interest Expense was $-8 Mil. Its Operating Income was $62 Mil. And its Long-Term Debt & Capital Lease Obligation was $540 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	62.1	/	-8
	=	7.76

The higher the ratio, the stronger the company's Financial Strength is.

HNI (NYSE:HNI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

HNI Interest Coverage Related Terms

Thank you for viewing the detailed overview of HNI's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

HNI (HNI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » HNI Corp (NYSE:HNI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HO9:Germany HO9:Germany

Address

600 East Second Street, P.O. Box 1109, Muscatine, IA, USA, 52761-0071

Website

https://www.hnicorp.com

HNI Corp is a provider of office furniture and hearth products. The company generates the bulk of its revenue from its workplace furnishing, which consists of panel-based and freestanding furniture systems, seating, storage, tables, and architectural products. These products are sold primarily through a national system of dealers, wholesalers, and office product distributors but also directly to end-user customers and federal, state, and local governments. Residential building products include a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, and accessories. The company has operations in the United States, Canada, Mainland China, Hong Kong, India, Mexico, and Taiwan.

Executives

Steven M Bradford	officer: Sr. VP, Gen. Counsel & Sec.	408 EAST SECOND STREET, MUSCATINE IA 52761
Jeffrey D Lorenger	officer: VP, Gen. Counsel and Secretary	408 EAST SECOND STREET, PO BOX 1109, MUSCATINE IA 52761
Vincent P Berger	officer: President, Hearth & Home Tech	7571 215TH STREET WEST, LAKEVILLE MN 55044
Marshall H Bridges	officer: VP and Chief Financial Officer	408 EAST SECOND STREET, MUSCATINE IA 52761
Michael J. Roch	officer: CCO, WP & Health, Kimball Intl	C/O KIMBALL INTERNATIONAL, INC., 1600 ROYAL STREET, JASPER IN 47546
Gregory A Meunier	officer: Ex VP GL Ops, Kimball Intl	1600 ROYAL ST, JASPER IN 47546
Kourtney L Smith	officer: COO, Kimball International	1600 ROYAL STREET, JASPER IN 47549
Larry B Porcellato	director	ICI PAINTS, 15885 SPRAGUE ROAD, CLEVELAND OH 44136
Patrick D Hallinan	director	FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Radhakrishna S Rao	officer: Chief Info and Digital Officer	600 EAST SECOND STREET, MUSCTAINE IA 52761
Ronald V Waters	director	75 EAST ELM STREET, CHICAGO IL 60611
Miguel M Calado	director	3600 AMHERST, UNIVERSITY PARK, DALLAS TX 75225
Kurt A Tjaden	officer: SVP HNI; President HNI Intl	408 EAST SECOND STREET, MUSCATINE IA 52761
Jason Dean Hagedorn	officer: President, Allsteel Inc.	600 EAST SECOND STREET, MUSCATINE IA 52761
Donna D Meade	officer: VP, Member Relations	408 EAST SECOND STREET, MUSCATINE IA 52761