Hanesbrands Inc (HBI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 10.11 8.15 8.71 — 8.64 7.03 7.22 7.65 7.60 7.26 7.03 8.34 8.53 6.72 5.57 9.23 8.55 6.75 6.88 7.42
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
Working capital turnover 6.36 6.18 5.13 4.78 4.65 4.42 4.59 5.58 5.66 4.52 4.95 5.26 5.02 3.19 3.29 3.10 4.79 4.58 4.39 4.80

Hanesbrands Inc's inventory turnover ratio has shown some fluctuations over the periods under review, with an average of around 3.35. This indicates that, on average, the company turns its inventory over approximately 3.35 times a year, which suggests moderate efficiency in managing its inventory.

In terms of receivables turnover, Hanesbrands Inc has demonstrated a relatively stable performance, with an average turnover of about 7.75. This indicates that the company collects its receivables approximately 7.75 times a year, reflecting effectiveness in collecting outstanding payments from customers.

On the other hand, the payables turnover ratio has also shown some variability, with an average turnover of approximately 5.67. This implies that the company pays its suppliers about 5.67 times a year, indicating a moderate efficiency in managing its accounts payable.

In assessing the working capital turnover, Hanesbrands Inc has shown a consistent performance with an average turnover of around 4.84. This suggests that the company generates approximately $4.84 in revenue for every $1 of working capital employed, indicating effective utilization of working capital to generate sales.

Overall, Hanesbrands Inc's activity ratios reflect a moderate level of efficiency in managing its inventory, receivables, payables, and working capital, which are essential components of its operational and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 100.76 107.13 127.61 136.95 126.40 132.15 128.77 109.01 93.71 89.33 82.81 80.92 76.41 122.39 109.42 118.69 134.63 161.89 190.74 192.87
Days of sales outstanding (DSO) days 36.12 44.76 41.93 — 42.24 51.93 50.54 47.74 48.02 50.31 51.95 43.74 42.81 54.35 65.48 39.54 42.71 54.03 53.02 49.20
Number of days of payables days 54.23 55.79 66.62 67.16 58.58 69.94 76.20 72.13 71.87 67.97 63.39 53.07 49.83 66.72 67.93 58.19 67.75 77.05 88.10 87.03

In analyzing the activity ratios of Hanesbrands Inc, we observe that the days of inventory on hand (DOH) have fluctuated over the periods provided, ranging from 76.41 days to 192.87 days. The most recent DOH as of December 31, 2023, stands at 100.76 days, indicating an improvement in inventory management efficiency compared to previous quarters.

Regarding the days of sales outstanding (DSO), we note variability in the collection period, with figures ranging from 36.12 days to 65.48 days. The DSO as of December 31, 2023, is 36.12 days, reflecting a faster collection of receivables compared to earlier periods, which suggests effective credit management.

Furthermore, the number of days of payables has shown fluctuations, varying from 49.83 days to 88.10 days. As of December 31, 2023, the company has 54.23 days of payables outstanding, indicating a reasonable payment period to suppliers compared to previous quarters.

Overall, while there have been fluctuations in Hanesbrands Inc's activity ratios over the periods analyzed, the recent trends suggest improvements in inventory management efficiency, faster collection of receivables, and maintaining a reasonable payment period to suppliers.

Long-term

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
Fixed asset turnover 13.60 13.99 13.83 13.67 14.09 14.70 14.99 15.48 15.40 15.28 15.13 14.70 13.71 13.64 13.42 13.33 13.50 12.00 11.66 11.50
Total asset turnover 1.00 0.98 0.95 0.94 0.96 0.92 0.94 1.00 0.96 0.90 0.93 0.96 0.85 0.81 0.82 0.84 0.95 0.90 0.89 0.88

Hanesbrands Inc's fixed asset turnover ratio has shown a general downward trend over the past five years, indicating a decline in the efficiency of utilizing its fixed assets to generate sales. However, the ratio has remained consistently above 10, implying that the company is still efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has fluctuated over the same period, with variations between 0.81 and 1.00. This suggests that Hanesbrands Inc's overall efficiency in generating sales from all its assets, both fixed and current, has been inconsistent.

Overall, while the fixed asset turnover ratio has shown relative stability and efficiency in utilizing fixed assets, the total asset turnover ratio indicates some variability in the company's overall asset utilization efficiency. Further analysis would be needed to understand the underlying factors driving these trends in Hanesbrands Inc's long-term activity ratios.