Hanesbrands Inc (HBI)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 288,782 | 253,020 | 328,502 | 406,352 | 519,545 | 614,776 | 707,978 | 778,118 | 797,728 | 245,655 | 200,096 | 184,835 | 42,666 | 682,588 | 760,572 | 788,039 | 889,730 | 890,438 | 879,424 | 869,062 |
| Revenue (ttm) | US$ in thousands | 5,636,530 | 5,812,990 | 5,972,420 | 6,046,910 | 6,233,660 | 6,512,720 | 6,631,530 | 6,869,370 | 6,796,660 | 6,733,450 | 6,752,170 | 6,739,640 | 6,550,530 | 6,612,390 | 6,671,090 | 6,693,240 | 6,966,920 | 6,984,220 | 6,965,960 | 6,920,470 |
| Operating profit margin | 5.12% | 4.35% | 5.50% | 6.72% | 8.33% | 9.44% | 10.68% | 11.33% | 11.74% | 3.65% | 2.96% | 2.74% | 0.65% | 10.32% | 11.40% | 11.77% | 12.77% | 12.75% | 12.62% | 12.56% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $288,782K ÷ $5,636,530K
= 5.12%
The operating profit margin of Hanesbrands Inc has shown fluctuations over the past few quarters. Starting from a high of 12.77% in March 2019, the margin gradually decreased to 5.12% by December 2023. There was a noticeable dip in the margin around the first quarter of 2021, reaching a low of 0.65%. However, there was a subsequent recovery with margins improving to above 10% in the latter half of 2021 and early 2022.
The downward trend resumed after mid-2022, with margins steadily declining to the current level of 5.12% in December 2023. This trend indicates a potential challenge in maintaining profitability on the operating level. Further analysis into the company's cost structure, pricing strategy, and operating efficiency may be necessary to understand the drivers behind these margin movements and to formulate strategies for improvement.