Hanesbrands Inc (HBI)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -25,092 | 356,703 | 137,331 | -185,519 | 670,956 |
| Revenue | US$ in thousands | 5,628,060 | 6,226,350 | 6,745,200 | 6,115,600 | 6,956,190 |
| Pretax margin | -0.45% | 5.73% | 2.04% | -3.03% | 9.65% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-25,092K ÷ $5,628,060K
= -0.45%
Hanesbrands Inc's pretax margin has been fluctuating over the past five years. The company experienced negative pretax margins in 2020 and 2019, indicating that its expenses exceeded its gross profit before accounting for taxes. The pretax margin improved in 2021 and 2022, reaching 2.04% and 5.73%, respectively, suggesting better cost management and higher profitability relative to revenue.
However, in 2023, the pretax margin declined significantly to -0.45%, signaling a potential reversal in profitability. This negative margin may indicate increased expenses or lower revenue, impacting the company's overall financial performance. The fluctuation in pretax margin highlights the importance of closely monitoring the company's cost structure and revenue generation to ensure sustainable profitability in the long term.