Hanesbrands Inc (HBI)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,840,940 | 5,461,600 | 5,379,840 | 5,589,680 | 5,640,310 | 5,913,290 | 6,279,030 | 6,432,680 | 6,503,880 | 7,099,280 | 7,089,310 | 6,859,710 | 7,071,440 | 7,462,800 | 7,277,990 | 6,989,250 | 7,698,870 | 8,159,680 | 8,112,960 | 7,943,260 |
| Total stockholders’ equity | US$ in thousands | 34,010 | 149,344 | 64,403 | 338,174 | 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 |
| Financial leverage ratio | 112.94 | 36.57 | 83.53 | 16.53 | 13.45 | 21.58 | 18.05 | 18.95 | 16.33 | 10.52 | 9.95 | 8.80 | 10.07 | 11.72 | 12.95 | 14.43 | 9.46 | 7.10 | 7.52 | 9.09 |
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 significant fluctuations over the period analyzed. The ratio started at 9.09 in March 2020, decreased to 7.10 in September 2020, and then increased to 14.43 by March 2021. This indicates a notable increase in leverage, perhaps due to increased borrowing or a decrease in equity.
Subsequently, there was a gradual decline in the leverage ratio, reaching 8.80 by March 2022. However, a notable jump occurred in June 2024, where the ratio soared to 83.53, suggesting a substantial increase in financial leverage. This sharp increase could be a cause for concern as it may indicate high debt levels relative to equity, potentially increasing financial risk.
Overall, careful monitoring of Hanesbrands Inc's financial leverage ratio is essential to assess the company's capital structure and risk profile accurately. High fluctuations in this ratio can signal changes in the company's debt levels and financial health, warranting further investigation and strategic financial management decisions.