Hanesbrands Inc (HBI)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 1.37 1.49 1.46 1.59 1.64 1.57 1.67 1.72 1.75 1.71 1.70 1.60 1.52 1.62 1.60 1.64 1.62 2.03 2.01 2.21
Quick ratio 0.17 0.20 0.14 0.13 0.15 0.12 0.11 0.12 0.13 0.12 0.12 0.18 0.23 0.36 0.30 0.26 0.43 0.36 0.34 0.61
Cash ratio 0.17 0.20 0.14 0.13 0.15 0.12 0.11 0.12 0.13 0.12 0.12 0.18 0.23 0.36 0.30 0.26 0.43 0.36 0.34 0.61

Hanesbrands Inc's liquidity ratios indicate the company's ability to meet short-term obligations. The current ratio gradually declined from 2.21 in March 2020 to 1.37 in December 2024, signifying a reduction in its ability to cover current liabilities with current assets over the years.

Similarly, the quick ratio showed a decreasing trend from 0.61 in March 2020 to 0.17 in December 2024, indicating that the company may struggle to meet its short-term obligations using its most liquid assets.

The cash ratio, which measures a company's ability to cover its current liabilities with its cash and cash equivalents, also followed a decreasing trend from 0.61 in March 2020 to 0.17 in December 2024, suggesting a potential strain on the company's ability to pay its short-term obligations solely with available cash.

Overall, the declining trend in these liquidity ratios may raise concerns regarding Hanesbrands Inc's short-term financial health and ability to meet its immediate payment obligations over the years.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 139.02 128.65 109.50 148.71 147.44 155.13 184.33 198.51 180.08 188.99 185.77 156.81 139.33 125.45 115.37 111.44 113.01 189.34 172.36 173.64

The cash conversion cycle of Hanesbrands Inc, a key indicator of efficiency in managing its working capital, has shown fluctuations over the periods analyzed.

From March 31, 2020, to June 30, 2020, the cycle decreased slightly from 173.64 days to 172.36 days, indicating a potential improvement in managing cash flow and inventory turnover. However, this trend was reversed in the following quarters, with the cycle increasing significantly to 189.34 days by September 30, 2020.

Thereafter, Hanesbrands Inc managed to reduce its cash conversion cycle notably by December 31, 2020, and even further by March 31, 2021, showing enhanced efficiency in converting raw materials into cash.

The trend continued positively into June 30, 2021, and September 30, 2021, where the cycle remained relatively low. However, there was a noticeable increase in the cycle by December 31, 2021, possibly indicating challenges in managing accounts receivables and payables.

The cycle then fluctuated over the following periods, reaching a peak of 198.51 days by March 31, 2023. Subsequently, there was a significant improvement seen by June 30, 2024, where the cycle reduced to 109.50 days, possibly due to better inventory management or collection of receivables.

Overall, Hanesbrands Inc's cash conversion cycle has shown variability, suggesting fluctuations in working capital management effectiveness over the analyzed periods. Ongoing monitoring and improvements in operational processes related to inventory, accounts receivable, and accounts payable may be necessary to enhance overall efficiency in the conversion of resources into cash.