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Hanesbrands Beneish M-Score

: -3.22 (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 -3.22 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:

NYSE:HBI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22   Med: -2.53   Max: -2.05
Current: -3.22

-3.22
-2.05

During the past 13 years, the highest Beneish M-Score of Hanesbrands was -2.05. The lowest was -3.22. And the median was -2.53.


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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.23 -2.84 -2.56 -2.57 -2.53

Hanesbrands Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -2.45 -2.68 -2.53 -2.76 -3.22

Competitive Comparison

For the Apparel Manufacturing industry, 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 Apparel Manufacturing 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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.744+0.528 * 1.255+0.404 * 1.0328+0.892 * 1.0792+0.115 * 0.8241
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0963+4.679 * -0.141-0.327 * 1.0888
=-3.22

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $961 Mil.
Revenue was 1751.311 + 1508.029 + 1800.843 + 1808.266 = $6,868 Mil.
Gross Profit was 681.629 + 602.681 + 124.807 + 616.713 = $2,026 Mil.
Total Current Assets was $3,621 Mil.
Total Assets was $7,278 Mil.
Property, Plant and Equipment(Net PPE) was $845 Mil.
Depreciation, Depletion and Amortization(DDA) was $130 Mil.
Selling, General, & Admin. Expense(SGA) was $1,887 Mil.
Total Current Liabilities was $2,256 Mil.
Long-Term Debt & Capital Lease Obligation was $3,947 Mil.
Net Income was 128.676 + -263.262 + -332.164 + 103.278 = $-363 Mil.
Non Operating Income was -1.855 + -2.561 + -6.283 + -5.309 = $-16 Mil.
Cash Flow from Operations was 195.31 + 16.946 + 217.247 + 249.015 = $679 Mil.
Accounts Receivable was $1,197 Mil.
Revenue was 1543.083 + 1203.07 + 1751.005 + 1866.967 = $6,364 Mil.
Gross Profit was 513.862 + 418.168 + 706.743 + 717.033 = $2,356 Mil.
Total Current Assets was $4,032 Mil.
Total Assets was $8,113 Mil.
Property, Plant and Equipment(Net PPE) was $1,046 Mil.
Depreciation, Depletion and Amortization(DDA) was $129 Mil.
Selling, General, & Admin. Expense(SGA) was $1,595 Mil.
Total Current Liabilities was $2,002 Mil.
Long-Term Debt & Capital Lease Obligation was $4,348 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(960.993 / 6868.449) / (1196.826 / 6364.125)
=0.13991412 / 0.18805822
=0.744

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)
=(2355.806 / 6364.125) / (2025.83 / 6868.449)
=0.37016966 / 0.29494723
=1.255

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 - (3620.614 + 844.882) / 7277.989) / (1 - (4031.805 + 1045.526) / 8112.96)
=0.3864382 / 0.37417034
=1.0328

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
=6868.449 / 6364.125
=1.0792

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))
=(129.183 / (129.183 + 1045.526)) / (130.098 / (130.098 + 844.882))
=0.10997021 / 0.13343658
=0.8241

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)
=(1887.479 / 6868.449) / (1595.234 / 6364.125)
=0.27480425 / 0.25066038
=1.0963

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)
=((3946.862 + 2255.956) / 7277.989) / ((4348.201 + 2002.248) / 8112.96)
=0.85227087 / 0.78275364
=1.0888

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
=(-363.472 - -16.008 - 678.518) / 7277.989
=-0.141

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 -3.22 suggests that the company is unlikely to be a manipulator.


Hanesbrands Beneish M-Score Related Terms

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Hanesbrands 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, Bali, 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
Upchurch W Howard Jr officer: Group President, IW Americas 1000 EAST HANES MILL ROAD WINSTON SALEM NC 27106
Griffin Bobby J director C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PL STE 700 STAMFORD CT 06902
Oliver Kristin L officer: Chief Human Resources Officer 11215 METRO PARKWAY FORT MYERS FL 33966
Ziegler Ann Elizabeth director ONE EAST WACKER DR CHICAGO IL 60601
Bratspies Stephen B director, officer: Chief Executive Officer 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Ram Jonathan officer: Group Pres., Global Activewear 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Bortolussi David L officer: Group Pres, Innerwear Intl 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Lewis Markland Scott officer: CAO and Interim CFO 1000 EAST HANES MILL ROAD LEGAL DEPARTMENT WINSTON-SALEM NC 27105
Faircloth Michael E. officer: Group Pres, Global Ops 1000 EAST HANES MILL ROAD WINSTON-SALEM NC 27105
Breig Geralyn director ONE OLD COUNTRY ROAD SUITE 500 CARLE PLACE NY 11514
Evans Gerald director, officer: Chief Executive Officer 1000 EAST HANES MILL ROAD WINSTON-SALEM NC 27105
Singer David V director 13024 BALLANTYNE CORPORATE PL SUITE 900 CHARLOTTE NC 28277
Moran Robert F director C/O GNC HOLDINGS, INC. 300 SIXTH AVENUE PITTSBURGH PA 15222
Johnson Joia M officer: Chief Admin Ofcr, GC&Corp Sec C/O HANESBRANDS INC. 1000 EAST HANES MILL ROAD WINSTON SALEM NC 27105
Moison Franck J director C/O COLGATE PALMOLIVE CO 300 PARK AVE 15TH FL NEW YORK NY 10022

Hanesbrands Headlines

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