Hanesbrands Inc (HBI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -17,726 | -127,204 | 77,224 | -75,579 | 600,720 |
| Total assets | US$ in thousands | 5,640,310 | 6,503,880 | 7,071,440 | 7,719,870 | 7,353,990 |
| ROA | -0.31% | -1.96% | 1.09% | -0.98% | 8.17% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-17,726K ÷ $5,640,310K
= -0.31%
Based on the data provided, Hanesbrands Inc's return on assets (ROA) has fluctuated over the past five years. In 2023, the ROA was at -0.31%, showing a slight improvement from the previous year's -1.96%. However, compared to the more favorable ROA of 8.17% in 2019, the recent performance reflects a significant decline.
The negative ROA values in 2022 and 2023 indicate that the company's net income generated from its assets was insufficient to cover the cost of those assets. This can raise concerns about the company's operational efficiency and profitability. The positive ROA of 1.09% in 2021 suggests a moderate level of asset utilization, but the subsequent decrease to -0.98% in 2020 indicates a decline in generating profits from assets.
Overall, Hanesbrands Inc's fluctuating ROA trend indicates the need for further analysis to understand the factors contributing to the company's performance and to assess its ability to effectively utilize its assets to generate profits.