Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', HNI's gross profit margin was 34.7%, showing profitability after production and operational costs. Industry average for Office Equipment/Supplies/Services in '2021' stood at 29.0%.
• In '2022', HNI's gross profit margin was 35.4%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2022' stood at 29.9%. Industry average increased by 0.9% compared to previous year.
• In '2023', HNI's gross profit margin was 39.0%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2023' stood at 31.8%. Industry average increased by 1.8% compared to previous year.
• In '2024', HNI's gross profit margin was 40.9%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2024' stood at 33.1%. Industry average increased by 1.4% compared to previous year.
Overall, HNI's gross profit margin has steadily improved over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.