Hanesbrands Inc (HBI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 434,628 | 459,899 | 422,863 | 365,644 | 293,152 | 221,245 | 296,727 | 374,577 | 519,545 | 614,776 | 707,978 | 778,118 | 797,728 | 198,426 | 138,351 | 162,493 | 6,501 | 693,652 | 788,837 | 781,318 |
| Total assets | US$ in thousands | 3,840,940 | 5,461,600 | 5,379,840 | 5,589,680 | 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 | 7,698,870 | 8,159,680 | 8,112,960 | 7,943,260 |
| Operating ROA | 11.32% | 8.42% | 7.86% | 6.54% | 5.20% | 3.74% | 4.73% | 5.82% | 7.99% | 8.66% | 9.99% | 11.34% | 11.28% | 2.66% | 1.90% | 2.32% | 0.08% | 8.50% | 9.72% | 9.84% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $434,628K ÷ $3,840,940K
= 11.32%
Operating return on assets (ROA) is a key financial ratio that measures a company's efficiency in generating operating income relative to its total assets.
Analyzing the operating ROA data provided for Hanesbrands Inc over several quarters reveals fluctuations in the company's performance. The ratio shows a declining trend from 9.84% in March 2020 to a low of 0.08% in December 2020. This significant drop indicates a decrease in the company's ability to generate operating income relative to its asset base during this period.
However, there is a notable recovery in operating ROA starting in March 2021, with the ratio gradually increasing to 11.32% by December 2024. This improvement suggests that the company has become more efficient in utilizing its assets to generate operating profits over time.
The fluctuation in the operating ROA may be attributed to various factors such as changes in operating expenses, revenue fluctuations, asset utilization efficiency, or strategic business decisions made by the company.
Overall, the varying performance of Hanesbrands Inc in terms of operating ROA indicates the importance of continually monitoring and managing the company's operating efficiency and asset utilization to drive sustainable profitability and value creation for stakeholders.