Hanesbrands Inc (HBI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 205,501 | 238,413 | 536,277 | 900,615 | 328,876 |
| Short-term investments | US$ in thousands | — | — | — | — | 926 |
| Receivables | US$ in thousands | 557,729 | 721,396 | 894,151 | 768,221 | 815,210 |
| Total current liabilities | US$ in thousands | 1,390,570 | 1,790,630 | 2,327,050 | 2,124,360 | 1,771,440 |
| Quick ratio | 0.55 | 0.54 | 0.61 | 0.79 | 0.65 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($205,501K
+ $—K
+ $557,729K)
÷ $1,390,570K
= 0.55
The quick ratio of Hanesbrands Inc has shown a decreasing trend over the past five years, from 0.65 in 2019 to 0.55 in 2023. This indicates that the company may be facing challenges in meeting its short-term obligations with its most liquid assets. A quick ratio below 1.0 suggests a potential liquidity risk, as it indicates that the company may not be able to cover its current liabilities with its quick assets alone.
It is important for stakeholders to monitor the trend in the quick ratio to assess the company's ability to quickly meet its short-term financial obligations. A declining quick ratio may signal a need for the company to improve its liquidity position through better management of current assets and liabilities. Further analysis of the components of the quick ratio, such as cash, marketable securities, and accounts receivable, can provide more insights into the company's liquidity management.