Hanesbrands Inc (HBI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,147,910 | 3,740,110 | 4,012,540 | 4,149,540 | 4,816,090 |
| Inventory | US$ in thousands | 871,044 | 1,368,020 | 1,979,670 | 1,584,020 | 1,491,100 |
| Inventory turnover | 2.47 | 2.73 | 2.03 | 2.62 | 3.23 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,147,910K ÷ $871,044K
= 2.47
Hanesbrands Inc's inventory turnover has been fluctuating over the past five years. It stood at 3.23 in December 31, 2020, indicating that the company turned over its inventory approximately 3.23 times during that period. However, the ratio decreased to 2.62 by December 31, 2021, suggesting a decrease in the efficiency of inventory management.
By December 31, 2022, the inventory turnover ratio dropped further to 2.03, reflecting a slower rate of inventory turnover. There was a slight improvement in inventory turnover by December 31, 2023, reaching 2.73. Yet, by December 31, 2024, the ratio declined again to 2.47, signaling that the company may be taking longer to sell its inventory compared to the previous year.
Overall, Hanesbrands Inc's inventory turnover ratio has shown variability, indicating changes in how efficiently the company manages its inventory levels and sales. The downward trend in recent years suggests potential challenges in optimizing inventory turnover, which could impact the company's liquidity and profitability.