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Hanesbrands (NYSE:HBI) Beneish M-Score

: -2.44 (As of Today)
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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 -2.44 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:

HBI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Med: -2.58   Max: -2.23
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Hanesbrands was -2.23. The lowest was -2.91. And the median was -2.58.


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 Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.56 -2.54 -2.63 -2.91 -2.44

Hanesbrands Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Beneish M-Score 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 -2.91 -2.42 -2.28 -1.99 -2.44

Competitive Comparison

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 Beneish M-Score Distribution

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 in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8803+0.528 * 1.0942+0.404 * 0.9986+0.892 * 0.9165+0.115 * 1.1262
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0014+4.679 * 0.0371-0.327 * 1.0496
=-2.44

* 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.

This Year (Dec22) TTM:Last Year (Dec21) TTM:
Total Receivables was $721 Mil.
Revenue was 1473.286 + 1670.741 + 1513.467 + 1576.156 = $6,234 Mil.
Gross Profit was 501.977 + 562.852 + 572.101 + 584.178 = $2,221 Mil.
Total Current Assets was $3,132 Mil.
Total Assets was $6,504 Mil.
Property, Plant and Equipment(Net PPE) was $857 Mil.
Depreciation, Depletion and Amortization(DDA) was $106 Mil.
Selling, General, & Admin. Expense(SGA) was $1,702 Mil.
Total Current Liabilities was $1,791 Mil.
Long-Term Debt & Capital Lease Obligation was $3,939 Mil.
Net Income was -418.108 + 80.101 + 92.101 + 118.702 = $-127 Mil.
Non Operating Income was -3.646 + -3.212 + -1.889 + -0.987 = $-10 Mil.
Cash Flow from Operations was 132.88 + -50.608 + -209.885 + -231.189 = $-359 Mil.
Total Receivables was $894 Mil.
Revenue was 1752.349 + 1789.551 + 1751.311 + 1508.029 = $6,801 Mil.
Gross Profit was 667.728 + 699.661 + 681.629 + 602.681 = $2,652 Mil.
Total Current Assets was $3,528 Mil.
Total Assets was $7,071 Mil.
Property, Plant and Equipment(Net PPE) was $805 Mil.
Depreciation, Depletion and Amortization(DDA) was $114 Mil.
Selling, General, & Admin. Expense(SGA) was $1,854 Mil.
Total Current Liabilities was $2,327 Mil.
Long-Term Debt & Capital Lease Obligation was $3,608 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)
=(721.396 / 6233.65) / (894.151 / 6801.24)
=0.1157261 / 0.13146882
=0.8803

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)
=(2651.699 / 6801.24) / (2221.108 / 6233.65)
=0.38988464 / 0.35630939
=1.0942

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 - (3131.754 + 857.298) / 6503.876) / (1 - (3528.103 + 805.255) / 7071.436)
=0.38666543 / 0.38720254
=0.9986

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
=6233.65 / 6801.24
=0.9165

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))
=(114.198 / (114.198 + 805.255)) / (106.267 / (106.267 + 857.298))
=0.12420211 / 0.11028524
=1.1262

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)
=(1701.563 / 6233.65) / (1853.971 / 6801.24)
=0.27296415 / 0.27259309
=1.0014

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)
=((3938.721 + 1790.63) / 6503.876) / ((3607.943 + 2327.053) / 7071.436)
=0.88091332 / 0.83929148
=1.0496

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
=(-127.204 - -9.734 - -358.802) / 6503.876
=0.0371

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 -2.44 suggests that the company is unlikely to be a manipulator.


Hanesbrands Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Hanesbrands's Beneish M-Score 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. 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
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
Cheryl K Beebe director CORN PRODUCTS INTERNATIONAL INC, 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154
Ronald L Nelson director
Vanessa Lefebvre Robinson officer: President Activewear - Global 1000 E. HANES MILL ROAD, WINSTON-SALEM NC 27105
Stephen B Bratspies director, officer: Chief Executive Officer 1000 E. HANES MILL ROAD, WINSTON-SALEM NC 27105
Greg Leroy Hall officer: Chief Consumer Officer 1000 E. HANES MILL ROAD, WINSTON-SALEM NC 27105
William S Simon director 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Michael Dastugue officer: Chief Financial Officer 6501 LEGACY DRIVE, PLANO TX 75024
Joseph W Cavaliere officer: Group Pres., Global Innerwear 1000 E. HANES MILL ROAD, WINSTON-SALEM NC 27105

Hanesbrands (NYSE:HBI) Headlines

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