Hanesbrands Inc (HBI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -320,431 | -17,726 | -131,169 | 520,968 | -75,579 |
| Total stockholders’ equity | US$ in thousands | 34,010 | 419,353 | 398,264 | 702,493 | 813,958 |
| ROE | -942.17% | -4.23% | -32.94% | 74.16% | -9.29% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-320,431K ÷ $34,010K
= -942.17%
Analysis of Hanesbrands Inc Return on Equity (ROE)
Hanesbrands Inc's Return on Equity (ROE) is a key financial metric that indicates the company's efficiency in generating profits from shareholders' equity. Analyzing the trend in ROE over the past five years provides insights into the company's financial performance and management effectiveness.
1. December 31, 2020 (-9.29%): In 2020, Hanesbrands Inc had a negative ROE, indicating that the company was not efficiently utilizing shareholders' equity to generate profits. This could be a result of lower profitability, higher debt levels, or inefficiencies in asset utilization.
2. December 31, 2021 (74.16%): The significant increase in ROE in 2021 reflects a positive turnaround for Hanesbrands Inc. The company was able to generate higher profits relative to shareholder equity, indicating improved efficiency and potentially stronger financial performance.
3. December 31, 2022 (-32.94%): The sharp decline in ROE in 2022 suggests a reversal in the positive trend seen in the previous year. Hanesbrands Inc's profitability may have decreased or the company may have faced challenges in effectively utilizing shareholder equity during this period.
4. December 31, 2023 (-4.23%): The slight decrease in ROE in 2023 indicates that Hanesbrands Inc continued to face challenges in generating sufficient profits relative to shareholder equity. The company's profitability may have remained under pressure or its capital structure and asset management may need improvement.
5. December 31, 2024 (-942.17%): The extremely low ROE in 2024 raises significant concerns about Hanesbrands Inc's financial health and operational efficiency. A negative ROE of this magnitude suggests substantial losses relative to shareholder equity, which could be caused by severe financial distress, poor performance, or exceptional one-time events.
In conclusion, the analysis of Hanesbrands Inc's ROE shows a fluctuating performance over the past five years, with both positive and negative trends. Investors and stakeholders should closely monitor the company's financial indicators, profitability drivers, and operational strategies to assess its long-term sustainability and potential for improvement in ROE.