Hanesbrands Inc (HBI)
Debt-to-equity ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,235,640 | 3,310,260 | 3,504,280 | 3,588,940 | 3,612,080 | 3,655,890 | 3,627,200 | 3,325,040 | 3,326,090 | 3,626,550 | 3,647,480 | 3,649,630 | 3,739,430 | 3,972,210 | 3,985,630 | 4,236,960 | 3,256,870 | 3,467,590 | 3,671,070 | 3,615,490 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,236,600 | 1,118,090 | 1,025,390 | 932,991 |
| Debt-to-equity ratio | 7.72 | 12.08 | 10.07 | 10.57 | 9.07 | 5.42 | 5.09 | 4.27 | 4.73 | 5.70 | 6.49 | 7.53 | 4.59 | 3.46 | 3.69 | 4.85 | 2.63 | 3.10 | 3.58 | 3.88 |
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 shown fluctuations over the past five years, indicating changes in the company's capital structure and financial leverage. The ratio has generally been trending upwards, reaching a high of 12.08 in September 2023 and a low of 2.63 in December 2019.
A high debt-to-equity ratio, like in September 2023, indicates that the company is relying more on debt to finance its operations compared to shareholders' equity. This can be a sign of financial risk, as it may indicate that the company is highly leveraged and more vulnerable to economic downturns or interest rate increases.
Conversely, a low debt-to-equity ratio, such as in December 2019, suggests that the company is relying more on equity financing, which may be seen as a more stable and secure financial position.
It is important for investors and stakeholders to monitor the trend of the debt-to-equity ratio over time to assess the company's financial health and risk profile. Additionally, comparing the ratio to industry peers can provide further insight into how Hanesbrands Inc's leverage levels stack up relative to its competitors.