Hanesbrands Inc (HBI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 214,854 | 205,501 | 238,413 | 536,277 | 909,437 |
| Short-term investments | US$ in thousands | — | 23 | — | — | — |
| Total current liabilities | US$ in thousands | 1,248,540 | 1,390,570 | 1,790,630 | 2,327,050 | 2,103,370 |
| Cash ratio | 0.17 | 0.15 | 0.13 | 0.23 | 0.43 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($214,854K
+ $—K)
÷ $1,248,540K
= 0.17
The cash ratio of Hanesbrands Inc has shown a declining trend over the years from 2020 to 2024. The ratio decreased from 0.43 in 2020 to 0.17 in 2024, indicating a decrease in the company's ability to cover its short-term liabilities with its available cash and cash equivalents. This downward trend may raise concerns about the company's liquidity position and its ability to meet its immediate financial obligations solely from its cash holdings. Management should closely monitor this ratio and consider strategies to improve the company's cash position to ensure financial stability and sustainability.