Hanesbrands Inc (HBI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.76% | 33.65% | 35.63% | 38.99% | 27.73% |
| Operating profit margin | 5.30% | 5.12% | 8.33% | 11.73% | -0.25% |
| Pretax margin | -1.64% | -0.45% | 5.66% | 8.54% | -2.75% |
| Net profit margin | -9.14% | -0.31% | -2.10% | 7.66% | -1.13% |
Hanesbrands Inc has demonstrated varying levels of profitability over the years based on the provided data.
- Gross Profit Margin: The company's gross profit margin has shown an upward trend from 27.73% in December 31, 2020, to 38.76% in December 31, 2024. This indicates that the company has been able to improve its efficiency in managing production costs and generating revenue.
- Operating Profit Margin: Hanesbrands Inc has shown a positive operating profit margin, starting from -0.25% in December 31, 2020, and gradually increasing to 5.30% in December 31, 2024. This indicates that the company has been able to control its operating expenses and improve operational efficiency.
- Pretax Margin: The pretax margin has been volatile over the years, ranging from -2.75% in December 31, 2020, to 8.54% in December 31, 2021. However, it decreased to -1.64% in December 31, 2024. This suggests that the company's performance before tax has fluctuated, with some years being more profitable than others.
- Net Profit Margin: The net profit margin has shown inconsistency, starting at -1.13% in December 31, 2020, increasing to 7.66% in December 31, 2021, but then decreasing to -9.14% in December 31, 2024. This indicates that the company's bottom line profitability has been impacted by various factors, potentially including taxes, interest expenses, and non-operating items.
In conclusion, while Hanesbrands Inc has made improvements in its gross and operating profit margins over the years, its pretax and net profit margins have not shown a consistent positive trend, reflecting the challenges and fluctuations the company has faced in managing its profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.84% | 5.12% | 7.99% | 11.28% | -0.22% |
| Return on assets (ROA) | -8.34% | -0.31% | -2.02% | 7.37% | -0.98% |
| Return on total capital | 407.25% | 61.60% | 149.23% | 106.47% | 3.64% |
| Return on equity (ROE) | -942.17% | -4.23% | -32.94% | 74.16% | -9.29% |
The profitability ratios of Hanesbrands Inc show fluctuations over the years as follows:
1. Operating return on assets (Operating ROA) improved significantly from -0.22% in 2020 to 11.28% in 2021 but declined in the following years to 7.99% in 2022, 5.12% in 2023, and 4.84% in 2024.
2. Return on assets (ROA) saw a positive trend from -0.98% in 2020 to 7.37% in 2021 but turned negative in the subsequent years at -2.02% in 2022, -0.31% in 2023, and -8.34% in 2024.
3. Return on total capital steadily increased from 3.64% in 2020 to a peak of 407.25% in 2024, indicating the company was generating significant returns in relation to its total capital employed.
4. Return on equity (ROE) had a mixed performance, with a sharp increase from -9.29% in 2020 to 74.16% in 2021, but then declined in the subsequent years to -32.94% in 2022, -4.23% in 2023, and a substantial drop to -942.17% in 2024.
Overall, the company experienced fluctuations in profitability ratios over the years, with varying levels of profitability and returns generated from assets, total capital, and equity. Further analysis would be required to understand the factors influencing these trends and assess the company's financial performance comprehensively.