Hanesbrands Inc (HBI)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Hanesbrands Inc:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period.
- Hanesbrands Inc's inventory turnover has fluctuated over the years: from 3.23 in 2020 to 2.62 in 2021, dropping to 2.03 in 2022, then increasing to 2.73 in 2023, and finally decreasing to 2.47 in 2024.
- A higher inventory turnover ratio indicates that the company is selling products more efficiently.

2. Receivables Turnover:
- The receivables turnover ratio measures how many times a company collects its accounts receivable during a period.
- The data provided indicates that the receivables turnover is not available (denoted by "\u2014") for the years 2020 to 2024.
- This could suggest that the company does not report or disclose this ratio, making it difficult to assess the efficiency of its accounts receivable management.

3. Payables Turnover:
- The payables turnover ratio measures how many times a company pays its suppliers during a period.
- Similar to receivables turnover, the data shows that the payables turnover is also not available (denoted by "\u2014") for the years 2020 to 2024.
- Without this ratio, it is challenging to evaluate how effectively Hanesbrands Inc manages its trade payables.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate revenue.
- Hanesbrands Inc's working capital turnover has shown an increasing trend over the years: from 5.11 in 2020 to 7.51 in 2024.
- A higher working capital turnover ratio implies that the company is generating more revenue per unit of working capital employed.

In conclusion, while the inventory turnover and working capital turnover of Hanesbrands Inc demonstrate changes over the years, the lack of data for receivables turnover and payables turnover limits a comprehensive assessment of the company's efficiency in managing its receivables and payables.

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Average number of days

Hanesbrands Inc's Days of Inventory on Hand (DOH) has shown an increasing trend over the years, from 113.01 days in December 2020 to 148.02 days in December 2024. This indicates that, on average, the company is holding inventory for a longer period before selling it, which could tie up capital and increase carrying costs.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis, as the values are not provided for any of the years. In the absence of this information, it is challenging to assess the efficiency of the company in collecting receivables and managing payables.

Overall, based on the available data for Days of Inventory on Hand, Hanesbrands Inc has experienced an increase in the number of days it holds inventory. Further insights into the collection of receivables and management of payables would provide a more comprehensive view of the company's operational efficiency and working capital management.

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Long-term

Hanesbrands Inc's long-term activity ratios, such as Fixed Asset Turnover and Total Asset Turnover, provide insights into how efficiently the company is utilizing its assets to generate sales.

Fixed Asset Turnover measures the efficiency of the company in generating sales from its fixed assets. The trend shows a decrease from 12.21 in 2020 to 7.27 in 2022, indicating a decline in the company's ability to generate sales from its fixed assets over the period under review. The ratio is not available for the latest two years, 2023 and 2024.

Total Asset Turnover reflects the company's ability to generate sales from all its assets. The ratio remained relatively stable around 0.9 over the years, with a slight increase to 1.00 in 2023. This suggests that the company is generating roughly the same level of sales relative to its total assets, with a slight improvement in 2023.

Overall, the analysis of Hanesbrands Inc's long-term activity ratios indicates a decline in efficiency in generating sales from fixed assets, while the company's ability to generate sales from all assets has been relatively stable, showing slight improvement in recent years.