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Hanesbrands (NYSE:HBI) Financial Strength

: 4 (As of Sep. 2022)
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Hanesbrands has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Hanesbrands's Interest Coverage for the quarter that ended in Sep. 2022 was 3.39. Hanesbrands's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.64. As of today, Hanesbrands's Altman Z-Score is 1.84.


Hanesbrands (NYSE:HBI) Financial Strength Competitive Comparison

For the Apparel Manufacturing subindustry, Hanesbrands's Financial Strength, along with its competitors' market caps and Financial Strength 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 (NYSE:HBI) Financial Strength Distribution

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

* The bar in red indicates where Hanesbrands's Financial Strength falls into.



Hanesbrands Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Hanesbrands's Interest Expense for the months ended in Sep. 2022 was $-42 Mil. Its Operating Income for the months ended in Sep. 2022 was $141 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $3,916 Mil.

Hanesbrands's Interest Coverage for the quarter that ended in Sep. 2022 is

Interest Coverage=-1*Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*141.444/-41.721
=3.39

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Hanesbrands's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(342.155 + 3916.238) / 6682.964
=0.64

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Hanesbrands has a Z-score of 1.84, indicating it is in Grey Zones. This implies that Hanesbrands is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.84 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Hanesbrands has the Financial Strength Rank of 4.


Hanesbrands Financial Strength Related Terms

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


Hanesbrands (NYSE:HBI) Business Description

Hanesbrands logo
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, 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
Simon William S director 1000 DARDEN CENTER DRIVE ORLANDO FL 32837
Dastugue Michael officer: Chief Financial Officer 6501 LEGACY DRIVE PLANO TX 75024
Preston Tracy M officer: GC, Corp Sec and CCO 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Cavaliere Joseph W officer: Group Pres., Global Innerwear 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Beebe Cheryl K director CORN PRODUCTS INTERNATIONAL INC 5 WESTBROOK CORPORATE CENTER WESTCHESTER IL 60154
Hall Greg Leroy officer: Chief Consumer Officer 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Oliver Kristin L officer: Chief Human Resources Officer 11215 METRO PARKWAY FORT MYERS FL 33966
Bratspies Stephen B director, officer: Chief Executive Officer 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Bortolussi David L officer: President, Hanes Australasia 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Breig Geralyn director ONE OLD COUNTRY ROAD SUITE 500 CARLE PLACE NY 11514
Ram Jonathan officer: Group Pres., Global Activewear 1000 E. HANES MILL ROAD WINSTON-SALEM NC 27105
Hytinen Barry officer: Chief Financial Officer 1000 TEMPUR WAY LEXINGTON KY 40502
Lewis Markland Scott officer: Chief Accounting Officer 1000 EAST HANES MILL ROAD LEGAL DEPARTMENT WINSTON-SALEM NC 27105
Moison Franck J director C/O COLGATE PALMOLIVE CO 300 PARK AVE 15TH FL NEW YORK NY 10022
Singer David V director 13024 BALLANTYNE CORPORATE PL SUITE 900 CHARLOTTE NC 28277

Hanesbrands (NYSE:HBI) Headlines

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