Hanesbrands Inc (HBI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,628,060 | 6,226,350 | 6,745,200 | 6,115,600 | 6,956,190 |
| Property, plant and equipment | US$ in thousands | 414,366 | 442,404 | 441,401 | 477,821 | 515,937 |
| Fixed asset turnover | 13.58 | 14.07 | 15.28 | 12.80 | 13.48 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,628,060K ÷ $414,366K
= 13.58
Fixed asset turnover measures how efficiently a company generates revenue from its investment in fixed assets. Hanesbrands Inc's fixed asset turnover has shown fluctuations over the past five years. In 2023, the company had a fixed asset turnover of 13.58, slightly lower than the previous year but still indicating that for every dollar invested in fixed assets, the company generated $13.58 in revenue. This suggests that the company is efficiently utilizing its fixed assets to generate sales.
Comparing to 2021 and 2020, where the fixed asset turnover was higher at 15.28 and 12.80 respectively, we observe some variability in the efficiency of asset utilization. The dip in 2020 indicates a potential inefficiency in asset utilization, which was subsequently improved in 2021. Overall, the trend in fixed asset turnover for Hanesbrands Inc over the past five years shows some fluctuations, but generally suggests efficient utilization of fixed assets to generate revenue.