Hanesbrands Inc (HBI)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,636,530 | 5,812,990 | 5,972,420 | 6,046,910 | 6,233,660 | 6,512,720 | 6,631,530 | 6,869,370 | 6,796,660 | 6,733,450 | 6,752,170 | 6,739,640 | 6,550,530 | 6,612,390 | 6,671,090 | 6,693,240 | 6,966,920 | 6,984,220 | 6,965,960 | 6,920,470 |
| Property, plant and equipment | US$ in thousands | 414,366 | 415,527 | 431,714 | 442,315 | 442,404 | 443,166 | 442,539 | 443,817 | 441,401 | 440,804 | 446,356 | 458,434 | 477,821 | 484,939 | 496,933 | 502,167 | 515,937 | 581,971 | 597,444 | 601,689 |
| Fixed asset turnover | 13.60 | 13.99 | 13.83 | 13.67 | 14.09 | 14.70 | 14.99 | 15.48 | 15.40 | 15.28 | 15.13 | 14.70 | 13.71 | 13.64 | 13.42 | 13.33 | 13.50 | 12.00 | 11.66 | 11.50 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,636,530K ÷ $414,366K
= 13.60
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that a company is generating more revenue per dollar invested in fixed assets.
Analyzing the fixed asset turnover of Hanesbrands Inc over the past few quarters, we observe a generally stable trend with some fluctuations. The ratio has ranged between 11.50 and 15.48 over the past five quarters, with the highest value recorded in March 2022.
The ratios above 13 suggest that Hanesbrands Inc has been effectively utilizing its fixed assets to generate revenue during these periods. This indicates a high level of efficiency in managing and utilizing its property, plant, and equipment to drive sales and profitability.
Overall, the consistent and relatively high fixed asset turnover for Hanesbrands Inc reflects positively on the company's operational efficiency and asset utilization in generating revenue. However, it would be essential to continue monitoring this ratio to ensure sustained efficiency in the utilization of fixed assets over the long term.