Hanesbrands Inc (HBI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,468,740 | 5,845,850 | 6,278,980 | 6,214,850 | 6,256,580 |
| Inventory | US$ in thousands | 1,368,020 | 1,979,670 | 1,584,020 | 1,367,760 | 1,905,840 |
| Inventory turnover | 4.00 | 2.95 | 3.96 | 4.54 | 3.28 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,468,740K ÷ $1,368,020K
= 4.00
The inventory turnover ratio of Hanesbrands Inc has shown fluctuations over the past five years. In 2023, the inventory turnover ratio stood at 4.00, representing an improvement compared to the previous year where it was 2.95. This indicates that the company was able to sell and replace its inventory 4 times during the year, reflecting efficient management of inventory. However, it is worth noting that the inventory turnover ratio was higher in 2020 and 2019 at 4.54 and 3.28 respectively, suggesting that the company's inventory turnover efficiency was stronger in those years. Overall, Hanesbrands Inc's inventory turnover has shown variability, and further analysis is needed to understand the reasons behind these fluctuations.