Hanesbrands Inc (HBI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,628,060 | 6,226,350 | 6,745,200 | 6,115,600 | 6,956,190 |
| Receivables | US$ in thousands | 557,729 | 721,396 | 894,151 | 768,221 | 815,210 |
| Receivables turnover | 10.09 | 8.63 | 7.54 | 7.96 | 8.53 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,628,060K ÷ $557,729K
= 10.09
The receivables turnover ratio for Hanesbrands Inc has shown a general increasing trend over the past five years, indicating an improvement in the efficiency of the company in collecting its accounts receivables. The ratio increased from 8.53 in 2019 to 10.09 in 2023.
A higher receivables turnover ratio suggests that the company is collecting its outstanding receivables more quickly, which is a positive signal of strong liquidity and effective credit management. Hanesbrands Inc's ability to convert its accounts receivables into cash has been improving, reflecting efficient working capital management.
The upward trend in the receivables turnover ratio over the years indicates that Hanesbrands Inc has been effectively managing its credit policies and collection procedures, resulting in a faster turnover of credit sales into cash. This trend is favorable for the company as it signifies a healthy financial position and operational efficiency in terms of cash flow and working capital management.