Hanesbrands Inc (HBI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 5,640,310 | 5,913,290 | 6,279,030 | 6,432,680 | 6,503,880 | 7,099,280 | 7,089,310 | 6,859,710 | 7,071,440 | 7,462,800 | 7,277,990 | 6,989,250 | 7,719,870 | 8,168,540 | 8,123,300 | 7,968,100 | 7,353,990 | 7,723,830 | 7,846,040 | 7,824,160 |
| Operating ROA | 5.12% | 4.28% | 5.23% | 6.32% | 7.99% | 8.66% | 9.99% | 11.34% | 11.28% | 3.29% | 2.75% | 2.64% | 0.55% | 8.36% | 9.36% | 9.89% | 12.10% | 11.53% | 11.21% | 11.11% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $288,782K ÷ $5,640,310K
= 5.12%
Operating return on assets (ROA) measures the profitability of a company's operations relative to its total assets. It is calculated by dividing operating income by average total assets. A higher operating ROA indicates that a company is generating more income from its assets.
Analyzing the operating ROA trend of Hanesbrands Inc over the past years reveals fluctuations in performance. The company's operating ROA has shown a decreasing trend from a high of 12.10% in March 2019 to a low of 0.55% in March 2021, indicating a decrease in profitability relative to its assets during this period.
However, there has been some recovery in the operating ROA since then, with an increase to 5.12% in December 2023. The recent uptrend suggests improvements in operational efficiency and asset utilization. It is worth noting that the operating ROA is still below its previous highs, and the company may need to continue focusing on maximizing profitability from its assets to enhance overall financial performance.
Overall, while the operating ROA of Hanesbrands Inc has fluctuated over the years, the recent increase indicates positive developments in operational efficiency and asset management. Monitoring this ratio going forward will be essential to assess the company's ability to generate returns from its assets effectively.