Hanesbrands Inc (HBI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 112.94 | 13.45 | 16.33 | 10.07 | 9.46 |
Based on the provided data, the solvency ratios of Hanesbrands Inc indicate a consistent and significant decrease in leverage over the years.
1. Debt-to-assets ratio: Hanesbrands has maintained a debt-to-assets ratio of 0.00 for the years 2020, 2021, 2022, 2023, and 2024. This suggests that the company has not relied on debt to finance its assets and has a strong ability to cover its liabilities with its assets.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio also remains at 0.00 for all the years provided. This implies that the company's capital structure is not heavily reliant on debt, showcasing a strong financial position.
3. Debt-to-equity ratio: Hanesbrands maintains a debt-to-equity ratio of 0.00 across all the years, highlighting that the company is not highly leveraged and has a minimal debt burden relative to its equity.
4. Financial leverage ratio: The financial leverage ratio shows a sharp increase from 9.46 in 2020 to 112.94 in 2024. This significant rise indicates a substantial change in the company's capital structure, potentially due to an increase in liabilities compared to equity, which may warrant further scrutiny.
Overall, based on the information provided, Hanesbrands Inc appears to have a sound solvency position with minimal debt levels and a strong ability to cover its obligations with its existing assets and capital. However, the sharp increase in the financial leverage ratio in 2024 calls for monitoring to understand the factors driving this change and its potential impact on the company's solvency in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.71 | 0.94 | 3.78 | 4.59 | 0.18 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. Higher ratios indicate a stronger ability to cover interest costs. Looking at the data provided for Hanesbrands Inc, we observe fluctuations in the interest coverage ratio over the years:
- As of December 31, 2020, the interest coverage ratio was only 0.18, indicating that the company was struggling to meet its interest obligations with its operating income.
- By December 31, 2021, the ratio improved significantly to 4.59, signaling a strong increase in the company's ability to cover its interest expenses.
- In the following years, the interest coverage ratio remained above 1, which generally indicates that the company's operating income is sufficient to cover its interest payments, though there was some fluctuation.
- However, towards the end of the period, the interest coverage ratio dropped to 0.71 by December 31, 2024, which may raise concerns about the company's ability to meet its interest obligations with its current level of operating income.
Overall, the trend indicates that Hanesbrands Inc experienced some fluctuations in its ability to cover interest expenses during the period, with notable improvements in certain years but a decline towards the end. It would be important for investors and analysts to monitor this ratio closely to assess the company's financial health and risk management capabilities.