Hanesbrands Inc (HBI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148.02 | 133.51 | 180.08 | 139.33 | 113.01 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 148.02 | 133.51 | 180.08 | 139.33 | 113.01 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148.02 + — – —
= 148.02
The cash conversion cycle of Hanesbrands Inc has shown fluctuations over the past five years. In 2020, the company had a cash conversion cycle of 113.01 days, indicating that it took the company approximately 113 days to convert its investments in raw materials into cash from sales. This number increased to 139.33 days in 2021, suggesting a slowdown in the company's cash conversion efficiency.
By the end of 2022, the cash conversion cycle increased further to 180.08 days, signifying a significant delay in converting its resources into cash. However, in 2023, there was an improvement as the cash conversion cycle decreased to 133.51 days, indicating a more efficient utilization of the company's working capital.
In the most recent year, 2024, the cash conversion cycle increased slightly to 148.02 days. While the company is taking longer to convert its investments into cash compared to the previous year, the cycle remains better than the peak observed in 2022.
Overall, the trend in Hanesbrands Inc's cash conversion cycle suggests fluctuations in the efficiency of managing its working capital and indicates areas where the company may need to focus on optimizing its processes to improve cash flow management.