Hanesbrands Inc (HBI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.37 | 1.64 | 1.75 | 1.52 | 1.62 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,715,380K ÷ $1,248,540K
= 1.37
The current ratio of Hanesbrands Inc has shown some fluctuations over the past five years. In December 31, 2020, the current ratio was 1.62, indicating that the company had $1.62 in current assets for every $1 in current liabilities.
However, by December 31, 2021, the current ratio decreased to 1.52, suggesting a slight decrease in liquidity. The company's ability to cover its short-term obligations with its current assets weakened slightly.
In December 31, 2022, the current ratio improved to 1.75, indicating that Hanesbrands Inc had increased its ability to cover short-term liabilities with current assets. This increase in liquidity could be a positive sign for the company's financial health.
By December 31, 2023, the current ratio decreased to 1.64, indicating a slight reduction in liquidity compared to the previous year. While still above 1, showing the company's ability to meet short-term obligations, there was a minor deterioration in this aspect.
However, in December 31, 2024, the current ratio saw a more significant decrease to 1.37, indicating a notable decline in liquidity. This could raise concerns about the company's ability to meet its short-term obligations with its current assets.
Overall, the trend in Hanesbrands Inc's current ratio shows some variability over the five-year period, with fluctuations suggesting changes in the company's liquidity position. It would be important for stakeholders to monitor this ratio closely to assess the company's ability to effectively manage its short-term financial obligations.