Hanesbrands Inc (HBI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 205,501 | 238,413 | 536,277 | 900,615 | 328,876 |
| Short-term investments | US$ in thousands | — | — | — | — | 926 |
| Total current liabilities | US$ in thousands | 1,390,570 | 1,790,630 | 2,327,050 | 2,124,360 | 1,771,440 |
| Cash ratio | 0.15 | 0.13 | 0.23 | 0.42 | 0.19 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($205,501K
+ $—K)
÷ $1,390,570K
= 0.15
The cash ratio of Hanesbrands Inc has fluctuated over the past five years. In 2023, the cash ratio stands at 0.15, indicating that for every $1 of current liabilities, the company has $0.15 in cash and cash equivalents available to cover those obligations. This represents a slight increase from the prior year's ratio of 0.13.
Comparing this to 2021 and 2022, where the cash ratio was 0.23 and 0.42 respectively, we observe a downward trend in liquidity. The significant drop from 2021 to 2022 suggests a potential shift in the company's cash management or liquidity position. However, the current ratio is still higher than the 2019 ratio of 0.19.
Overall, the cash ratio for Hanesbrands Inc indicates a moderate level of liquidity in recent years, but the downward trend raises some concerns regarding the company's ability to cover its short-term obligations solely with cash on hand. It would be advisable to closely monitor this ratio in the future to ensure the company maintains a healthy liquidity position.