Hanesbrands Inc (HBI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,507,440 | 5,636,520 | 6,233,650 | 6,801,240 | 6,664,350 |
| Total current assets | US$ in thousands | 1,715,380 | 2,276,220 | 3,131,750 | 3,528,100 | 3,408,390 |
| Total current liabilities | US$ in thousands | 1,248,540 | 1,390,570 | 1,790,630 | 2,327,050 | 2,103,370 |
| Working capital turnover | 7.51 | 6.36 | 4.65 | 5.66 | 5.11 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,507,440K ÷ ($1,715,380K – $1,248,540K)
= 7.51
The working capital turnover ratio for Hanesbrands Inc has shown a positive trend over the years, increasing from 5.11 in 2020 to 7.51 in 2024. This indicates that the company is efficiently utilizing its working capital to generate sales. A higher working capital turnover ratio suggests that the company is able to efficiently manage its working capital and convert it into sales. However, the ratio experienced a slight dip in 2022 to 4.65 before rebounding strongly in the following years. Overall, the increasing trend in the working capital turnover ratio reflects the company's effective management of its working capital to drive sales growth.