Hanesbrands Inc (HBI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,640,310 | 6,503,880 | 7,071,440 | 7,719,870 | 7,353,990 |
| Total stockholders’ equity | US$ in thousands | 419,353 | 398,264 | 702,493 | 813,958 | 1,236,600 |
| Financial leverage ratio | 13.45 | 16.33 | 10.07 | 9.48 | 5.95 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,640,310K ÷ $419,353K
= 13.45
The financial leverage ratio of Hanesbrands Inc has displayed fluctuations over the past five years. The ratio stood at 13.45 as of December 31, 2023, slightly lower than the figure reported in the previous year. This indicates that the company utilized more debt to finance its assets compared to the prior year but to a lesser extent. In 2022, the ratio was at 16.33, reflecting a significant increase from the previous year, suggesting higher debt usage in the capital structure.
Looking back to 2021, the financial leverage ratio was 10.07, showing a moderate increase compared to 2020. However, in 2020, the ratio stood at 9.48, indicating a slight uptick in leveraging compared to the previous year. The lowest leverage ratio in the past five years was observed in 2019 at 5.95, signifying a relatively conservative capital structure with lower debt utilization.
Overall, the trend in the financial leverage ratio for Hanesbrands Inc has been fluctuating, with occasional increases and decreases in the level of leverage used to support the company's operations and investments during the period under review.