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Hanesbrands (NYSE:HBI) Cash Conversion Cycle

: 133.11 (As of Jun. 2023)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Hanesbrands's Days Sales Outstanding for the three months ended in Jun. 2023 was 43.37.
Hanesbrands's Days Inventory for the three months ended in Jun. 2023 was 181.55.
Hanesbrands's Days Payable for the three months ended in Jun. 2023 was 91.81.
Therefore, Hanesbrands's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2023 was 133.11.


Hanesbrands Cash Conversion Cycle Historical Data

The historical data trend for Hanesbrands's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hanesbrands Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cash Conversion Cycle
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 137.04 138.01 104.55 81.78 112.41

Hanesbrands Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 125.99 126.95 148.17 146.37 133.11

Competitive Comparison

For the Apparel Manufacturing subindustry, Hanesbrands's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Hanesbrands Cash Conversion Cycle Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hanesbrands's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Hanesbrands's Cash Conversion Cycle falls into.



Hanesbrands Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Hanesbrands's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=47.3+162.09-96.98
=112.41

Hanesbrands's Cash Conversion Cycle for the quarter that ended in Jun. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=43.37+181.55-91.81
=133.11

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Hanesbrands  (NYSE:HBI) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Hanesbrands Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Hanesbrands's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Hanesbrands (NYSE:HBI) Business Description

Hanesbrands logo
Traded in Other Exchanges
Address
1000 East Hanes Mill Road, Winston-Salem, NC, USA, 27105
Hanesbrands manufactures basic and athletic apparel under brands including Hanes, Champion, Playtex, Maidenform, Bali, Berlei, and Bonds. The company sells wholesale to discount, midmarket, and department store retailers as well as direct to consumers through stores and e-commerce. Hanesbrands is vertically integrated as it produces more than 70% of its products in company-controlled factories in more than three dozen nations. Hanesbrands distributes products in the Americas, Europe, and Asia-Pacific. The company was founded in 1901 and is based in Winston-Salem, North Carolina.
Executives
Mark A Irvin director 7601 PENN AVENUE, RICHFIELD MN 55423
Michael Dastugue officer: Chief Financial Officer 6501 LEGACY DRIVE, PLANO TX 75024
William S Simon director 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Joseph W Cavaliere officer: President Innerwear Global 1000 E. HANES MILL ROAD, WINSTON-SALEM NC 27105
Markland Scott Lewis officer: Chief Accounting Officer 1000 EAST HANES MILL ROAD, LEGAL DEPARTMENT, WINSTON-SALEM NC 27105
Michael E. Faircloth officer: EVP Supply Chain - Global 1000 EAST HANES MILL ROAD, WINSTON-SALEM NC 27105
Geralyn Breig director ONE OLD COUNTRY ROAD, SUITE 500, CARLE PLACE NY 11514
Scott A Pleiman officer: See Remarks 1000 E. HANES MILL ROAD, WINSTON-SALEM NC 27105
Robert F Moran director C/O GNC HOLDINGS, INC., 300 SIXTH AVENUE, PITTSBURGH PA 15222
Tracy M Preston officer: GC, Corp Sec and CCO 1000 E. HANES MILL ROAD, WINSTON-SALEM NC 27105
James C Johnson director 1901 CHOUTEAU AVENUE, P. O. BOX 66149, MC-1370, ST. LOUIS MO 63166-6149
Kristin L Oliver officer: Chief Human Resources Officer 11215 METRO PARKWAY, FORT MYERS FL 33966
Franck J Moison director C/O COLGATE PALMOLIVE CO, 300 PARK AVE 15TH FL, NEW YORK NY 10022
Ann Elizabeth Ziegler director ONE EAST WACKER DR, CHICAGO IL 60601
Bobby J Griffin director C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PL STE 700, STAMFORD CT 06902