Hanesbrands Inc (HBI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.70% | 35.67% | 39.31% | 26.21% | 34.91% |
| Operating profit margin | 5.13% | 8.34% | 11.83% | 0.70% | 12.23% |
| Pretax margin | -0.45% | 5.73% | 2.04% | -3.03% | 9.65% |
| Net profit margin | -0.31% | -2.04% | 1.14% | -1.24% | 8.64% |
Hanesbrands Inc's profitability ratios have exhibited fluctuations over the past five years. The gross profit margin has shown a declining trend, from 34.91% in 2019 to 33.70% in 2023, indicating a reduction in the company's ability to generate profit from its revenue after accounting for the cost of goods sold.
The operating profit margin has also experienced variability, with a notable decrease from 12.23% in 2019 to 5.13% in 2023. This indicates that Hanesbrands Inc's ability to generate operating profit from its sales has diminished over the years.
The pretax margin has been particularly volatile, with negative values in some years. From -3.03% in 2020, the margin improved to 5.73% in 2022 but turned negative again to -0.45% in 2023. This suggests that the company's profitability before accounting for taxes has been inconsistent.
Similarly, the net profit margin has seen fluctuations, with negative values in some years. While it was 8.64% in 2019, indicating a healthy level of profitability, it turned negative in 2020 and 2023. This pattern implies challenges in maintaining profitability after accounting for all expenses, including taxes and interest.
In conclusion, Hanesbrands Inc's profitability ratios demonstrate a lack of stability and a need for the company to focus on enhancing efficiency and cost management to improve its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.12% | 7.99% | 11.28% | 0.55% | 11.57% |
| Return on assets (ROA) | -0.31% | -1.96% | 1.09% | -0.98% | 8.17% |
| Return on total capital | 7.90% | 12.96% | 19.80% | 0.94% | 18.93% |
| Return on equity (ROE) | -4.23% | -31.94% | 10.99% | -9.29% | 48.58% |
Hanesbrands Inc's profitability ratios show fluctuating trends over the past five years. The Operating Return on Assets (Operating ROA) decreased from 11.57% in 2019 to 5.12% in 2023, indicating a decline in the company's operating efficiency in generating profits relative to its total assets.
The Return on Assets (ROA) also exhibited a negative trend, from 8.17% in 2019 to -0.31% in 2023. This suggests that the company's ability to generate profits from its assets weakened over the years.
On the other hand, the Return on Total Capital increased from 18.93% in 2019 to 7.90% in 2023, indicating a positive trend in the company's ability to generate returns from its total capital employed.
However, the Return on Equity (ROE) showed a volatile pattern, with a significant decrease from 48.58% in 2019 to -4.23% in 2023. This implies that the company's profitability in relation to shareholders' equity deteriorated significantly.
Overall, Hanesbrands Inc's profitability ratios reflect mixed performance, with variations in operating efficiency, capital utilization, and returns to shareholders over the five-year period.Further analysis and investigation would be needed to understand the factors contributing to these fluctuations in profitability ratios.