Hanesbrands Inc (HBI)
Payables 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 |
| Payables | US$ in thousands | 736,252 | 917,481 | 1,214,850 | 891,868 | 959,006 |
| Payables turnover | 7.43 | 6.37 | 5.17 | 6.97 | 6.52 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,468,740K ÷ $736,252K
= 7.43
Hanesbrands Inc's payables turnover has shown variability over the past five years. The ratio has ranged from 5.17 to 7.43, indicating how many times the company paid off its accounts payable during a specific period.
The increasing trend in payables turnover from 2021 to 2023 suggests that the company is managing its accounts payable more efficiently and paying its suppliers at a quicker rate. This may indicate improved liquidity or negotiation power with suppliers.
However, the fluctuation in the payables turnover ratio over the years could also indicate changes in the company's payment terms with suppliers, changes in purchasing patterns, or variations in business operations. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of Hanesbrands Inc's accounts payable management.