Hanesbrands Inc (HBI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 288,782 | 519,545 | 797,728 | 42,666 | 850,685 |
| Long-term debt | US$ in thousands | 3,235,640 | 3,612,080 | 3,326,090 | 3,739,430 | 3,256,870 |
| Total stockholders’ equity | US$ in thousands | 419,353 | 398,264 | 702,493 | 813,958 | 1,236,600 |
| Return on total capital | 7.90% | 12.96% | 19.80% | 0.94% | 18.93% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $288,782K ÷ ($3,235,640K + $419,353K)
= 7.90%
Hanesbrands Inc's return on total capital has fluctuated over the past five years, ranging from 0.94% in 2020 to 19.80% in 2021. The return on total capital was 7.90% in 2023, indicating a moderate level of profitability relative to the capital invested in the business. The substantial decrease in 2020 followed by a significant increase in 2021 suggests fluctuations in the company's efficiency in generating profits from the total capital employed. A declining trend in return on total capital may signal inefficiencies in capital utilization or profitability challenges that warrant further investigation and strategic adjustments.