Hanesbrands Inc (HBI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,840,940 | 5,640,310 | 6,503,880 | 7,071,440 | 7,698,870 |
| Total stockholders’ equity | US$ in thousands | 34,010 | 419,353 | 398,264 | 702,493 | 813,958 |
| Financial leverage ratio | 112.94 | 13.45 | 16.33 | 10.07 | 9.46 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,840,940K ÷ $34,010K
= 112.94
The financial leverage ratio of Hanesbrands Inc has shown fluctuating trends over the years. It increased from 9.46 in December 2020 to 10.07 in December 2021, indicating a slight rise in leverage. However, in December 2022, the ratio spiked significantly to 16.33, suggesting a notable increase in financial leverage. Subsequently, the ratio decreased to 13.45 in December 2023, but remained elevated compared to the previous years.
The most notable change occurred in December 2024, where the ratio surged to an exceptionally high level of 112.94. This implies a substantial increase in financial leverage that may raise concerns about the company's ability to meet its financial obligations.
Overall, the trend in the financial leverage ratio of Hanesbrands Inc demonstrates fluctuations with a significant spike in 2022 and a drastic increase in 2024. Monitoring this ratio will be crucial for assessing the company's financial risk and stability.