Hanesbrands Inc (HBI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Hanesbrands Inc's solvency ratios indicate a strong financial position with consistently low debt levels compared to its assets, capital, and equity.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 consistently from March 2020 to December 2024. This implies that the company's total debt is either very low or non-existent relative to its total assets, capital, and equity throughout the period under review.
The Financial leverage ratio, which measures the proportion of a company's assets that are financed by debt versus equity, has shown some fluctuation over the years. The ratio increased from 7.10 in September 2020 to 112.94 in December 2024, signaling a substantial increase in leverage towards the end of the period. This sudden spike in financial leverage in the latter part of the analysis period may indicate a significant increase in debt relative to equity, which could potentially raise concerns about the company's long-term financial stability.
Overall, while Hanesbrands Inc has maintained a solid solvency position with minimal debt relative to its assets, capital, and equity for most of the period, the substantial increase in financial leverage towards the end of the analysis period warrants further investigation to understand the reasons behind this change and its potential implications on the company's financial health and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.76 | 0.75 | 0.79 | 1.19 | 1.13 | 1.00 | 1.41 | 2.38 | 3.78 | 5.36 | 5.99 | 5.93 | 5.60 | 1.42 | 1.20 | 1.28 | 0.56 | 4.91 | 5.16 | 5.00 |
The interest coverage ratio of Hanesbrands Inc measures the company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a greater capacity to cover interest expenses with operating income.
Analyzing the data provided:
- The interest coverage ratio for Hanesbrands Inc was relatively stable and favorable in 2020, ranging between 4.91 and 5.16.
- However, there was a significant decline in the interest coverage ratio in December 2020, dropping to 0.56, which could indicate a potential strain on the company's ability to cover interest payments with operating income.
- The interest coverage ratio remained low in the first half of 2021, below 2, suggesting continued challenges in meeting interest obligations.
- There was a notable improvement in the interest coverage ratio in the second half of 2021 and throughout 2022, ranging between 3.78 and 5.99, which reflects a better ability to cover interest expenses.
- The interest coverage ratio fluctuated in 2023, indicating some variability in Hanesbrands Inc's ability to meet interest payments.
- By the end of 2024, the interest coverage ratio remained low at around 0.75-0.79, suggesting ongoing difficulties in covering interest expenses with operating income.
In conclusion, the interest coverage ratio of Hanesbrands Inc has shown both strength and weaknesses over the years, with periods of stability and challenges. It is essential for the company to maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations effectively.