Hanesbrands Inc (HBI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 7,719,870 | 8,168,540 | 8,123,300 | 7,968,100 | 7,353,990 | 7,723,830 | 7,846,040 | 7,824,160 |
| 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 |
| Financial leverage ratio | 13.45 | 21.58 | 18.05 | 18.95 | 16.33 | 10.52 | 9.95 | 8.80 | 10.07 | 11.72 | 12.95 | 14.43 | 9.48 | 7.11 | 7.53 | 9.12 | 5.95 | 6.91 | 7.65 | 8.39 |
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 fluctuated over the past several quarters, indicating variations in the company's use of debt to finance its operations and investments. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can amplify returns but also increases financial risk.
In the most recent quarter, the financial leverage ratio stood at 13.45, a significant increase from the previous quarter at 21.58. This sudden spike may raise concerns about the company's debt levels and its ability to manage debt repayments. However, it is important to consider the long-term trend, which shows that over the past few years, the financial leverage ratio has generally been within a moderate range.
It is worth noting that the financial leverage ratio was relatively low in the first two quarters of 2020, possibly due to conservative financial management during a period of economic uncertainty. Since then, the ratio has been trending upwards, which could indicate a strategic shift towards leveraging more debt to fund growth opportunities or acquisitions.
Overall, monitoring the financial leverage ratio alongside other financial metrics can provide a comprehensive view of Hanesbrands Inc's capital structure and risk profile, helping stakeholders assess the company's ability to meet its financial obligations while maximizing shareholder value.