Hanesbrands Inc (HBI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 138,507 | 258,336 | 594,327 | 747,975 | 29,648 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 34,010 | 419,353 | 398,264 | 702,493 | 813,958 |
| Return on total capital | 407.25% | 61.60% | 149.23% | 106.47% | 3.64% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $138,507K ÷ ($—K + $34,010K)
= 407.25%
Hanesbrands Inc's return on total capital has shown significant fluctuations over the years based on the provided data.
In December 31, 2020, the return on total capital stood at 3.64%, indicating a relatively low efficiency in generating profits from the total capital employed.
However, there was a substantial improvement by December 31, 2021, with a return on total capital of 106.47%, signifying a major leap in the company's ability to utilize its total capital effectively to generate returns.
The trend continued to improve significantly by December 31, 2022, reaching 149.23%. This indicates that the company's efficiency in utilizing its total capital to generate profits continued to strengthen.
There was a slight decline in December 31, 2023, with a return on total capital of 61.60%, although it still remained relatively high compared to the initial years analyzed.
Finally, by December 31, 2024, Hanesbrands Inc achieved an impressive return on total capital of 407.25%, showcasing exceptional efficiency in generating profits from the total capital employed.
Overall, the data illustrates a positive trend in Hanesbrands Inc's ability to generate returns on its total capital, with significant improvements over the years, indicating enhanced operational efficiency and profitability.