Hanesbrands Inc (HBI)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -17,726 | -127,204 | 77,224 | -75,579 | 600,720 |
| Revenue | US$ in thousands | 5,628,060 | 6,226,350 | 6,745,200 | 6,115,600 | 6,956,190 |
| Net profit margin | -0.31% | -2.04% | 1.14% | -1.24% | 8.64% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-17,726K ÷ $5,628,060K
= -0.31%
The net profit margin of Hanesbrands Inc has fluctuated over the past five years. In 2019, the company had a relatively high net profit margin of 8.64%, indicating that for every dollar of revenue generated, the company was able to retain 8.64 cents as profit. However, the net profit margin declined significantly in 2020 to -1.24%, resulting in a loss. This negative trend continued into 2021, with a margin of 1.14%, which was still below the industry average.
The situation worsened in 2022, as the net profit margin further decreased to -2.04%, indicating continued losses and financial challenges for the company. By the end of 2023, the net profit margin improved slightly but remained negative at -0.31%.
Overall, the decreasing trend in net profit margin over the past four years suggests that Hanesbrands Inc has been facing profitability issues and struggles in managing its costs effectively relative to its revenue generation. Investors and stakeholders may be concerned about the company's ability to improve its profitability in the future.