Hanesbrands (BSP:H1BI34) Beneish M-Score : -3.41 (As of Mar. 24, 2025)

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What is Hanesbrands Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Hanesbrands's Beneish M-Score or its related term are showing as below:

BSP:H1BI34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41 Med: -2.6 Max: -2.23
Current: -3.41

During the past 13 years, the highest Beneish M-Score of Hanesbrands was -2.23. The lowest was -3.41. And the median was -2.60.

Hanesbrands Beneish M-Score Historical Data

The historical data trend for Hanesbrands's Beneish M-Score 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 Beneish M-Score Chart

Hanesbrands Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.63

-2.91

-2.25

-3.20

-3.41

Hanesbrands Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-3.20	-3.12	-3.44	-3.15	-3.41

Competitive Comparison of Hanesbrands's Beneish M-Score

For the Apparel Manufacturing subindustry, Hanesbrands's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hanesbrands's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hanesbrands's Beneish M-Score falls into.

Hanesbrands Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Hanesbrands for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0825

0.528 * 0.9005

0.404 * 0.9191

0.892 * 1.0213

0.115 * 0.8765

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2005

4.679 * -0.124744

0.327 * 1.0997

-3.14

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was R$2,295 Mil.
Revenue was 4860.844 + 5189.489 + 5361.286 + 5757.65 = R$21,169 Mil.
Gross Profit was 2151.798 + 2162.179 + 1653.926 + 2295.324 = R$8,263 Mil.
Total Current Assets was R$10,466 Mil.
Total Assets was R$23,434 Mil.
Property, Plant and Equipment(Net PPE) was R$2,508 Mil.
Depreciation, Depletion and Amortization(DDA) was R$500 Mil.
Selling, General, & Admin. Expense(SGA) was R$7,121 Mil.
Total Current Liabilities was R$7,617 Mil.
Long-Term Debt & Capital Lease Obligation was R$14,595 Mil.
Net Income was -78.581 + 165.863 + -1607.105 + -194.82 = R$-1,715 Mil.
Non Operating Income was -109.342 + -52.637 + -58.089 + -46.168 = R$-266 Mil.
Cash Flow from Operations was 411.397 + 510.668 + 422.41 + 130.326 = R$1,475 Mil.

Total Receivables was R$2,076 Mil.
Revenue was 3719.232 + 4747.543 + 5023.599 + 7236.881 = R$20,727 Mil.
Gross Profit was 1484.331 + 1727.463 + 1731.766 + 2342.271 = R$7,286 Mil.
Total Current Assets was R$11,153 Mil.
Total Assets was R$27,636 Mil.
Property, Plant and Equipment(Net PPE) was R$3,061 Mil.
Depreciation, Depletion and Amortization(DDA) was R$522 Mil.
Selling, General, & Admin. Expense(SGA) was R$5,808 Mil.
Total Current Liabilities was R$6,814 Mil.
Long-Term Debt & Capital Lease Obligation was R$17,008 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(2295.166 / 21169.269)	/	(2075.957 / 20727.255)
	=	0.10842	/	0.100156
	=	1.0825

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(7285.831 / 20727.255)	/	(8263.227 / 21169.269)
	=	0.35151	/	0.390341
	=	0.9005

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (10465.509 + 2507.621) / 23433.581)	/	(1 - (11152.998 + 3061.326) / 27636.411)
	=	0.446387	/	0.485667
	=	0.9191

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	21169.269	/	20727.255
	=	1.0213

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(522.071 / (522.071 + 3061.326))	/	(499.92 / (499.92 + 2507.621))
	=	0.145692	/	0.166222
	=	0.8765

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(7120.756 / 21169.269)	/	(5807.803 / 20727.255)
	=	0.336372	/	0.280201
	=	1.2005

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((14594.696 + 7617.343) / 23433.581)	/	((17007.661 + 6813.505) / 27636.411)
	=	0.947872	/	0.861949
	=	1.0997

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-1714.643 - -266.236	-	1474.801)	/	23433.581
	=	-0.124744

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Hanesbrands has a M-score of -3.14 suggests that the company is unlikely to be a manipulator.

Hanesbrands Beneish M-Score Related Terms

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Hanesbrands Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Hanesbrands Inc (BSP:H1BI34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HBI:USA 0J2X:UK HN9:Germany

Address

1000 East Hanes Mill Road, Winston-Salem, NC, USA, 27105

Website

https://www.hanes.com

Hanesbrands manufactures basic and athletic apparel under brands including Hanes, 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 nearly 75% of its products in company-controlled factories in more than three dozen nations. Hanesbrands distributes products in the Americas and Asia-Pacific. The company was founded in 1901 and is based in Winston-Salem, North Carolina.

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