Hanesbrands Inc (HBI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 214,854 | 205,501 | 238,413 | 536,277 | 909,437 |
| Short-term investments | US$ in thousands | — | 23 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,248,540 | 1,390,570 | 1,790,630 | 2,327,050 | 2,103,370 |
| Quick ratio | 0.17 | 0.15 | 0.13 | 0.23 | 0.43 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($214,854K
+ $—K
+ $—K)
÷ $1,248,540K
= 0.17
The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
Over the past five years, Hanesbrands Inc.'s quick ratio has been declining steadily, from 0.43 as of December 31, 2020, to 0.17 as of December 31, 2024. This downward trend indicates a potential liquidity concern as the company may be having difficulty meeting its short-term obligations using its quick assets.
A quick ratio below 1.0 suggests that the company may not have enough liquid assets to cover its current liabilities. Hanesbrands Inc.'s quick ratios in the range of 0.13 to 0.23 over the last few years indicate a tight liquidity position and a potential need for improved management of current assets and liabilities to ensure financial stability and meet short-term obligations efficiently.
Investors and creditors may view a declining quick ratio with caution as it could be a sign of operational inefficiencies or financial difficulties. Management should closely monitor the company's liquidity position and take appropriate measures to improve the quick ratio to ensure financial health and stability in the future.