Hanesbrands Inc (HBI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.64 | 1.75 | 1.52 | 1.61 | 1.82 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,276,220K ÷ $1,390,570K
= 1.64
The current ratio of Hanesbrands Inc has been fluctuating over the past five years. It decreased from 1.82 in 2019 to 1.52 in 2021 before increasing to 1.75 in 2022. However, the current ratio declined again to 1.64 as of December 31, 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations. Hanesbrands' current ratio has generally remained above 1, reflecting its ability to meet its short-term financial obligations.
The declining trend in the current ratio from 2019 to 2023 may indicate potential liquidity challenges or changes in the company's operating cycle. It is essential for Hanesbrands to closely monitor its liquidity position and manage its current assets and liabilities effectively to ensure it can meet its short-term obligations in a timely manner.