>
Switch to:

Hanesbrands Altman Z-Score

: 1.90 (As of Today)
View and export this data going back to 2006. Start your Free Trial

Warning Sign:

Altman Z-score of 1.91 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

Hanesbrands has a Altman Z-Score of 1.90, 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 face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

NYSE:HBI' s Altman Z-Score Range Over the Past 10 Years
Min: 0.3   Med: 2.45   Max: 4.23
Current: 1.91

0.3
4.23

During the past 13 years, Hanesbrands's highest Altman Z-Score was 4.23. The lowest was 0.30. And the median was 2.45.


Hanesbrands Altman Z-Score Historical Data

The historical data trend for Hanesbrands's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.65 2.46 2.21 2.39 1.65

Hanesbrands Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-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 1.96 2.06 1.65 2.01 1.97

Competitive Comparison

For the Apparel Manufacturing subindustry, Hanesbrands's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution

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

* The bar in red indicates where Hanesbrands's Altman Z-Score falls into.



Hanesbrands Altman Z-Score Calculation

Altman 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.

Hanesbrands's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1875+1.4*0.114+3.3*0.0168+0.6*0.8672+1.0*0.9437
=1.90

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $7,278 Mil.
Total Current Assets was $3,621 Mil.
Total Current Liabilities was $2,256 Mil.
Retained Earnings was $829 Mil.
Pre-Tax Income was 173.099 + 143.101 + -494.134 + 125.394 = $-53 Mil.
Interest Expense was -42.44 + -44.46 + -44.115 + -43.868 = $-175 Mil.
Revenue was 1751.311 + 1508.029 + 1800.843 + 1808.266 = $6,868 Mil.
Market Cap (Today) was $5,824 Mil.
Total Liabilities was $6,716 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3620.614 - 2255.956)/7277.989
=0.1875

X2=Retained Earnings/Total Assets
=829.479/7277.989
=0.114

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-52.54 - -174.883)/7277.989
=0.0168

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5823.850/6715.799
=0.8672

X5=Revenue/Total Assets
=6868.449/7277.989
=0.9437

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Hanesbrands has a Altman Z-Score of 1.90 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Hanesbrands  (NYSE:HBI) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Hanesbrands Altman Z-Score Related Terms

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


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

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)