Hanesbrands Inc (HBI)
Working capital 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 |
| Total current assets | US$ in thousands | 2,276,220 | 3,131,750 | 3,528,100 | 3,429,380 | 3,224,560 |
| Total current liabilities | US$ in thousands | 1,390,570 | 1,790,630 | 2,327,050 | 2,124,360 | 1,771,440 |
| Working capital turnover | 6.35 | 4.64 | 5.62 | 4.69 | 4.79 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,628,060K ÷ ($2,276,220K – $1,390,570K)
= 6.35
Hanesbrands Inc's working capital turnover ratio has shown a positive trend over the past five years, indicating improved efficiency in managing its working capital to generate sales. The ratio has increased from 4.79 in 2019 to 6.35 in 2023. This suggests that the company is able to convert its working capital into revenue at a faster rate, potentially pointing towards stronger liquidity and operational efficiency. The upward trend indicates that Hanesbrands has been more efficient in utilizing its current assets and liabilities to support its sales growth.