Hanesbrands Inc (HBI)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -57,394 | -25,092 | 352,738 | 581,075 | -183,122 |
| Revenue | US$ in thousands | 3,507,440 | 5,636,520 | 6,233,650 | 6,801,240 | 6,664,350 |
| Pretax margin | -1.64% | -0.45% | 5.66% | 8.54% | -2.75% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-57,394K ÷ $3,507,440K
= -1.64%
Hanesbrands Inc's pretax margin has displayed fluctuations over the past five years. In December 2020, the company reported a negative pretax margin of -2.75%, indicating that expenses exceeded revenue before taxes. However, the following year saw a significant improvement as the pretax margin increased to 8.54%, reflecting better operational efficiency and profitability.
In 2022, the pretax margin slightly decreased to 5.66%, but it remained positive, indicating the company's ability to generate profit before accounting for taxes. However, the trend reversed in 2023 when the pretax margin dropped to -0.45%, signaling a decline in profitability potentially driven by higher expenses or lower revenue.
The most recent data for December 2024 shows a further decrease in the pretax margin to -1.64%, continuing the negative trend. This suggests that Hanesbrands Inc may be facing challenges in maintaining profitability. Overall, the fluctuating pretax margins reflect the company's varying financial performance and imply the need for a closer examination of its cost structures and revenue streams.