Hanesbrands Inc (HBI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 160,838 | 178,453 | 206,124 | 340,117 | 312,624 | 255,359 | 316,532 | 437,430 | 594,327 | 765,536 | 849,646 | 892,536 | 913,138 | 244,376 | 210,125 | 222,702 | 93,097 | 801,339 | 838,642 | 837,381 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 34,010 | 149,344 | 64,403 | 338,174 | 419,353 | 274,036 | 347,960 | 339,526 | 398,264 | 674,884 | 712,171 | 779,416 | 702,493 | 636,569 | 562,190 | 484,481 | 813,958 | 1,149,530 | 1,079,320 | 873,571 |
| Return on total capital | 472.91% | 119.49% | 320.05% | 100.57% | 74.55% | 93.18% | 90.97% | 128.84% | 149.23% | 113.43% | 119.30% | 114.51% | 129.99% | 38.39% | 37.38% | 45.97% | 11.44% | 69.71% | 77.70% | 95.86% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $160,838K ÷ ($—K + $34,010K)
= 472.91%
Hanesbrands Inc's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio stood at 95.86% on March 31, 2020, declined to 11.44% by December 31, 2020, and then showed a significant improvement, reaching 472.91% by December 31, 2024.
The return on total capital reflects the company's ability to generate profits from both equity and debt sources. The fluctuation in this ratio indicates changes in the efficiency of Hanesbrands Inc in utilizing its capital to generate returns for shareholders and debt holders.
The decline in the return on total capital from 95.86% on March 31, 2020, to 11.44% on December 31, 2020, may signal challenges or inefficiencies in the company's operations during that period. However, the subsequent increase in the ratio to 472.91% by December 31, 2024, indicates an improvement in the company's profitability and efficient capital utilization.
Overall, the return on total capital for Hanesbrands Inc fluctuated during the period analyzed, showcasing both challenges and improvements in the company's ability to generate returns for its capital providers.