Hanesbrands Inc (HBI)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,955,367 | 5,167,587 | 5,251,547 | 5,248,177 | 5,716,610 | 5,900,440 | 5,926,040 | 6,093,750 | 6,169,570 | 6,658,440 | 6,746,520 | 6,718,560 | 6,533,250 | 5,955,190 | 5,918,050 | 5,497,490 | 5,166,823 | 4,723,373 | 4,254,403 | 4,225,313 |
| Inventory | US$ in thousands | 1,368,020 | 1,516,780 | 1,836,020 | 1,969,130 | 1,979,670 | 2,136,310 | 2,090,710 | 1,819,970 | 1,584,020 | 1,629,510 | 1,530,620 | 1,489,560 | 1,367,760 | 1,996,850 | 1,774,140 | 1,787,660 | 1,905,840 | 2,095,040 | 2,223,200 | 2,232,720 |
| Inventory turnover | 3.62 | 3.41 | 2.86 | 2.67 | 2.89 | 2.76 | 2.83 | 3.35 | 3.89 | 4.09 | 4.41 | 4.51 | 4.78 | 2.98 | 3.34 | 3.08 | 2.71 | 2.25 | 1.91 | 1.89 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,955,367K ÷ $1,368,020K
= 3.62
Inventory turnover measures how efficiently a company is managing its inventory by indicating how many times a company's inventory is sold and replaced during a specific period. A higher inventory turnover is generally preferred as it suggests that a company is selling its inventory more quickly.
Analyzing the inventory turnover of Hanesbrands Inc over the past few quarters, we observe some fluctuations in this ratio. In the most recent quarter ending December 31, 2023, the inventory turnover was 3.62, indicating that Hanesbrands Inc sold and replaced its inventory approximately 3.62 times during that quarter. This is a positive sign compared to the previous quarter, where the turnover was 3.41.
Looking at the trend over the last two years, we can see that Hanesbrands Inc's inventory turnover has generally been increasing from a low of 1.89 in the first quarter of 2019 to a high of 4.78 in the fourth quarter of 2020. However, in recent quarters, the turnover has fluctuated between 2.67 and 3.62.
Overall, Hanesbrands Inc's inventory turnover has shown some variability but has generally been within a reasonable range. Further analysis of the company's inventory management policies and strategies may provide insights into the factors driving these fluctuations and help determine the effectiveness of its inventory management practices.