Hanesbrands Inc (HBI)
Payables 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 |
| Payables | US$ in thousands | 736,252 | 789,923 | 958,540 | 965,630 | 917,481 | 1,130,650 | 1,237,130 | 1,204,200 | 1,214,850 | 1,239,960 | 1,171,640 | 976,887 | 891,868 | 1,088,560 | 1,101,440 | 876,394 | 959,006 | 997,069 | 1,026,860 | 1,007,420 |
| Payables turnover | 6.73 | 6.54 | 5.48 | 5.43 | 6.23 | 5.22 | 4.79 | 5.06 | 5.08 | 5.37 | 5.76 | 6.88 | 7.33 | 5.47 | 5.37 | 6.27 | 5.39 | 4.74 | 4.14 | 4.19 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,955,367K ÷ $736,252K
= 6.73
The payables turnover ratio for Hanesbrands Inc has been fluctuating over the past few quarters, ranging from a low of 4.14 to a high of 7.33. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times, on average, the company pays off its suppliers in a given period.
A higher payables turnover ratio generally suggests that the company is more efficiently managing its payables and paying off its suppliers promptly. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially leading to strained relationships or missed discounts for early payment.
In analyzing Hanesbrands Inc's payables turnover, we can see that the ratio has generally been above 5, which indicates that the company has been effectively managing its payables. However, the fluctuations in the ratio suggest that the company's payment practices may vary quarter to quarter.
Overall, while the payables turnover ratio provides insight into the company's efficiency in managing its accounts payable, it is important to consider other financial metrics and factors to gain a comprehensive understanding of Hanesbrands Inc's financial performance and liquidity management.