Hanesbrands Inc (HBI)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 7.72 | 9.07 | 4.73 | 4.59 | 2.63 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,235,640K ÷ $419,353K
= 7.72
The debt-to-equity ratio of Hanesbrands Inc has been fluctuating over the past five years. The ratio increased from 2.63 in 2019 to 4.59 in 2020, showing a significant rise in debt relative to equity. In 2021, the ratio decreased to 4.73 but then substantially increased to 9.07 in 2022 and further to 7.72 in 2023. This indicates that the company has been relying more on debt to finance its operations and growth compared to equity. A higher debt-to-equity ratio suggests higher financial risk, as the company may have more financial leverage and interest obligations. It is essential for investors and creditors to closely monitor this ratio to assess the company's financial health and ability to manage its debt.