Hanesbrands Inc (HBI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 419,353 | 398,264 | 702,493 | 813,958 | 1,236,600 |
| ROE | -4.23% | -31.94% | 10.99% | -9.29% | 48.58% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-17,726K ÷ $419,353K
= -4.23%
The return on equity (ROE) measures a company's ability to generate profit from shareholders' equity. The trend in Hanesbrands Inc's ROE over the past five years indicates fluctuations in its profitability and efficiency in utilizing shareholder funds.
In 2019, the ROE was high at 48.58%, indicating strong profitability relative to shareholder equity. However, this was followed by a significant decline in 2020 to -9.29%, reflecting a decrease in profitability. The negative ROE suggests that the company's net income was insufficient to cover the shareholders' equity.
In 2021, there was a notable improvement in ROE to 10.99%, indicating a partial recovery in profitability. However, the ROE dropped again in 2022 to -31.94%, signaling a significant decline in profitability and efficiency.
The most recent data shows a further decrease in ROE to -4.23% in 2023, indicating ongoing challenges in generating profit relative to shareholder equity.
Overall, the fluctuating ROE trend suggests inconsistent performance in generating returns for shareholders over the past five years. Investors may need to closely monitor the company's operations and financial strategies to understand the factors influencing its profitability and efficiency in utilizing equity.