Hanesbrands Inc (HBI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 288,782 | 519,545 | 797,728 | 42,666 | 850,685 |
| Total assets | US$ in thousands | 5,640,310 | 6,503,880 | 7,071,440 | 7,719,870 | 7,353,990 |
| Operating ROA | 5.12% | 7.99% | 11.28% | 0.55% | 11.57% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $288,782K ÷ $5,640,310K
= 5.12%
Hanesbrands Inc's operating return on assets (ROA) has fluctuated over the past five years. The operating ROA was 5.12% in 2023, down from 7.99% in 2022 and significantly lower than the peak of 11.28% in 2021. The steep decline from 2021 to 2023 indicates a potential inefficiency in generating operating income from its assets during this period. The ROA was notably low at 0.55% in 2020, suggesting operational challenges or potentially underutilized assets. However, the company achieved a high operating ROA of 11.57% in 2019, indicating strong operational performance and efficient asset utilization. Overall, Hanesbrands Inc should focus on improving its operating efficiency and asset productivity to boost its operating return on assets in the future.