Cash conversion efficiency remains inconsistent, as evidenced by free cash flow margins that fluctuated from a negative 15.7% in 2025Q1 to a peak of 20.5% in 2023Q4.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Jan'16 | Jan'15 | Dec'13 | Dec'12 | Dec'11 | Jan'11 | Jan'10 | Jan'09 | Dec'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 |
|---|
| Cash from Operations | 23.16M | 264.24M | 561.75M | -358.8M | 623.41M | 448.47M | 803.43M | 643.4M | 655.72M | 605.61M | 227.01M | 508.09M | 591.28M | 548.9M | 167.96M | 133.05M | 414.5M | 177.4M | 359.04M | 510.62M | 506.87M | 471.44M | 493.99M |
| Operating CF Margin % | - | 7.53% | 15.44% | -9.29% | 9.17% | 7.32% | 12.5% | 9.46% | 10.13% | 10.05% | 3.96% | 9.54% | 12.78% | 12.13% | 3.62% | 3.08% | 10.65% | 4.18% | 8.02% | 11.42% | 10.82% | 10.18% | 10.58% |
| Operating CF Growth % | -712.57% | -52.96% | 256.56% | -157.55% | 39.01% | -44.18% | 24.87% | -1.88% | 8.27% | 166.78% | -55.32% | -14.07% | 7.72% | 226.81% | 26.23% | -67.9% | 133.66% | -50.59% | -29.69% | 0.74% | 7.52% | -4.56% | - |
| Net Income | 330.01M | -320.43M | -17.73M | -127.2M | 77.22M | -32.29M | 600.72M | 553.08M | 61.89M | 539.38M | 428.86M | 404.52M | 330.49M | 164.68M | 266.69M | 211.29M | 51.28M | 127.17M | 126.13M | 322.49M | 218.51M | 449.55M | 428.44M |
| Depreciation & Amortization | 41.7M | 92.06M | 105.04M | 106.27M | 114.2M | 126.62M | 141.7M | 131.8M | 122.49M | 103.17M | 103.9M | 98.2M | 90.89M | 93.04M | 90.72M | 86.61M | 96.75M | 121.18M | 138.15M | 114.2M | 117.89M | 114.23M | 108.66M |
| Stock-Based Compensation | 0 | 25.84M | 20.55M | 23.46M | 16.63M | 0 | 9.28M | 21.42M | 23.58M | 31.78M | 29.62M | 30.59M | 24.18M | 20.5M | 16.17M | 19.53M | 37.7M | 31.45M | 33.63M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -226.86M | -11.97M | -84.75M | 384.23M | 3.93M | -161.22M | 0 | 22.15M | 239.07M | -8.84M | 10.85M | -12.4M | 14.62M | -32.58M | 1.95M | 15.79M | -9.15M | -1.45M | 28.07M | -46.8M | 66.71M | 31.26M | 27.45M |
| Other Non-Cash Items | 116.68M | 333.51M | 21.66M | 11.65M | 529.37M | 631.74M | -20.54M | 8.14M | 43.74M | 43.74M | -1.62M | 7.97M | 8.76M | 81.73M | 26.62M | 43.61M | 57.85M | 2.88M | -30.43M | -4.22M | 4.01M | 12.17M | -17.46M |
| Working Capital Changes | -238.36M | 145.24M | 516.98M | -757.2M | -117.94M | -116.38M | 72.28M | -93.18M | 164.94M | -103.63M | -344.6M | -20.79M | 122.34M | 221.54M | -234.19M | -243.79M | 180.07M | -103.84M | 63.5M | 123.49M | 99.75M | -135.78M | -53.1M |
| Change in Receivables | 7.61M | -1.78M | 174.25M | 154.15M | -181.17M | -6.95M | 45.16M | 10.27M | -31.66M | -79.21M | -21.97M | 1.23M | 4.8M | -46.81M | 26.59M | -329K | -39.8M | 163.69M | -81.4M | 59.4M | 59.4M | 0 | 0 |
| Change in Inventory | -43.72M | 114.93M | 599.98M | -437.64M | -293.45M | -136.06M | 147.33M | -205.32M | 22.65M | 135.81M | -289.65M | -40.25M | 83.75M | 313.82M | -287.91M | -231.84M | 248.82M | -182.97M | 96.34M | 69.22M | 58.92M | -78.15M | -49.03M |
| Change in Payables | -57.24M | 17.65M | -194.6M | -241.56M | 368.75M | -32.64M | 0 | 165.79M | 71.81M | -60.99M | 74.61M | 71.9M | 30.9M | -40.58M | 39.71M | 29.93M | 3.52M | 34.05M | 67.04M | -673K | -673K | 0 | 0 |
| Cash from Investing | 847.16M | 813.03M | -23.48M | -216.43M | -52.45M | -41.08M | -109.66M | -418.65M | -104.51M | -966.64M | -276.8M | -358.31M | -597.39M | -27.87M | -85.63M | -284M | -88.84M | -177.25M | -101.08M | -110.66M | -60.08M | -61.26M | -77.3M |
| Capital Expenditures | -31.35M | -37.89M | -44.06M | -215.12M | -69.27M | -53.73M | -101.08M | -83.74M | -82.55M | -2.57M | -83.97M | -57.19M | -37.54M | -40.57M | -85.63M | -284M | -88.84M | -186.96M | -96.63M | -110.08M | -67.14M | -63.63M | -85.42M |
| CapEx % of Revenue | 0.91% | 1.08% | 1.21% | 5.57% | 1.02% | 0.88% | 1.57% | 1.23% | 1.28% | 0.04% | 1.47% | 1.07% | 0.81% | 0.9% | 1.85% | 6.56% | 2.28% | 4.4% | 2.16% | 2.46% | 1.43% | 1.37% | 1.83% |
| Acquisitions | 850.56M | 850.92M | 0 | 157K | 0 | 671K | -25.23M | -334.92M | -21.96M | -964.08M | -192.83M | -360.44M | -559.86M | 12.7M | -9.15M | -222.88M | 0 | -14.65M | -20.24M | -2.44M | -1.7M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 27.95M | 0 | 20.57M | -1.46M | 16.82M | 11.98M | 16.66M | 2.56M | 4.46M | 80.83M | 15.4M | -5.07M | 6.09M | 424K | 9.15M | 222.88M | 37.98M | 24.36M | 15.78M | 1.85M | 8.76M | 2.37M | 8.13M |
| Cash from Financing | -966.16M | -1.05B | -580.08M | 295.83M | -888.02M | 142.17M | -824.01M | -200.5M | -585.77M | 511.05M | 132.98M | -23.77M | 93.76M | -513.07M | -89.52M | 155.69M | -354.17M | -104.74M | -243.38M | -1.18B | -41.38M | -25.81M | -233.08M |
| Debt Issued (Net) | -935.16M | -1.04B | -577.15M | 533.58M | -668.64M | 557.31M | -436.92M | 34.84M | 100.07M | 1.15B | 674.38M | 109.59M | 161.97M | -522.81M | -97.81M | 148.15M | -354.51M | -95.14M | -205.98M | 2.17B | 328.65M | -35.5M | -28.91M |
| Equity Issued (Net) | 0 | 0 | 0 | -1000K | 0 | -1000K | 0 | 0 | -1000K | -1000K | -1000K | -1000K | 0 | 1000K | 0 | 0 | 0 | -1000K | -1000K | 139K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -209.31M | -209.48M | -210.38M | -216.96M | -216.32M | -219.9M | -167.38M | -161.32M | -119.61M | -59.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -25.02M | 0 | -200.27M | 0 | 0 | -400.02M | -379.9M | -351.5M | -54.59M | -41.84M | -4.71M | 0 | 0 | 0 | -30.27M | -44.47M | 0 | 0 | 0 | 0 |
| Other Financing | -31M | -7.45M | -2.92M | -3.42M | -9.9M | -4.48M | -170.13M | -19.02M | -65.92M | -94.95M | -28.59M | 40.84M | -8.77M | 984K | 8.29M | 7.53M | 332K | 20.67M | 883K | -3.36B | -1.51B | -5.88M | 3.1M |
| Net Change in Cash | -108.84M | 9.85M | -32.91M | -322.22M | -349.97M | 571.86M | -125.81M | 11.46M | -38.68M | 141.08M | 79.31M | 123.99M | 73.07M | 7.45M | -8.33M | 4.73M | -28.4M | -106.89M | 18.26M | -782.55M | 406.64M | 384.34M | 183.57M |
| Free Cash Flow | -8.19M | 226.35M | 517.69M | -573.92M | 554.14M | 394.73M | 702.35M | 559.67M | 573.17M | 603.04M | 143.04M | 450.9M | 553.74M | 508.33M | 82.32M | -150.94M | 325.66M | -9.56M | 262.41M | 400.54M | 439.74M | 407.8M | 408.56M |
| FCF Margin % | -0.24% | 6.45% | 14.22% | -14.86% | 8.15% | 6.44% | 10.93% | 8.23% | 8.86% | 10% | 2.5% | 8.47% | 11.97% | 11.23% | 1.78% | -3.49% | 8.37% | -0.22% | 5.86% | 8.96% | 9.39% | 8.8% | 8.75% |
| FCF Growth % | -101.9% | -56.28% | 190.2% | -203.57% | 40.38% | -43.8% | 25.49% | -2.36% | -4.95% | 321.6% | -68.28% | -18.57% | 8.93% | 517.48% | 154.54% | -146.35% | 3506.49% | -103.64% | -34.49% | -8.91% | 7.83% | -0.19% | - |
| FCF per Share | -0.02 | 0.64 | 1.48 | -1.64 | 1.57 | 1.12 | 1.92 | 1.54 | 1.55 | 1.57 | 0.35 | 1.11 | 1.36 | 1.27 | 0.21 | -0.39 | 0.85 | -0.03 | 0.68 | 1.04 | 1.14 | 1.06 | 1.06 |
| FCF Conversion (FCF/Net Income) | -0.02x | -0.82x | -31.69x | 2.82x | 8.07x | -5.93x | 1.34x | 1.19x | 8.88x | 1.12x | 0.53x | 1.26x | 1.79x | 3.33x | 0.63x | 0.63x | 8.08x | 1.39x | 2.85x | 1.58x | 2.32x | 1.05x | 1.15x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 171.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High leverage and liquidity
As reported in recent financial filings, HBI's operating cash flow to net income ratio has exhibited extreme volatility, ranging from 0.10 to over 11.00, which suggests that reported net income is a poor proxy for the company's actual ability to generate cash from its core operations.
The significant divergence between net income and operating cash flow indicates that non-cash charges and working capital swings are heavily distorting the bottom line. Investors should monitor this disconnect, as it implies that the company's reported profitability may not be translating into the liquidity necessary to service its substantial debt obligations.
Based on the provided quarterly data, HBI's free cash flow margins have fluctuated wildly from a negative 15.7% in 2025Q1 to a peak of 20.5% in 2023Q4, highlighting a lack of consistent cash generation that complicates the company's ability to fund ongoing operations and deleveraging efforts.
The erratic nature of free cash flow suggests that the business is highly sensitive to operational disruptions and inventory management challenges. This inconsistency warrants further investigation into whether the company can maintain positive cash flow during periods of sustained revenue contraction.
According to recent SEC filings, HBI experienced a significant $137.8 million outflow in working capital during 2025Q1, illustrating how inventory and receivables management can rapidly consume cash and exacerbate the company's existing liquidity constraints during periods of weak demand.
The frequent swings in working capital suggest that the company struggles to align its production cycles with retail demand, leading to inefficient cash usage. This pattern appears to be a primary driver of the company's inconsistent cash flow performance and may indicate deeper issues with inventory turnover.
As reported in financial statements, HBI's capital expenditure as a percentage of revenue has remained relatively low, peaking at 2.7% in 2024Q1, which may indicate a strategic attempt to preserve cash by deferring necessary investments in its vertically integrated manufacturing facilities.
While reduced capital spending helps preserve short-term liquidity, it may also signal a risk to the long-term competitiveness of the company's manufacturing base. Analysts should monitor whether this trend reflects a sustainable efficiency gain or a dangerous under-investment in the assets required to maintain the company's market position.
Based on reported figures, HBI has prioritized asset divestitures, such as the $850.6 million inflow in 2024Q4, over traditional capital returns, reflecting a desperate need to address its high debt load rather than reinvesting in core growth or returning capital to shareholders.
The reliance on asset sales to generate cash suggests that the company's core operations are currently insufficient to support its capital structure. Investors should remain cautious, as this strategy is finite and does not address the underlying need for improved operational profitability.
Quick answers to the most common questions about buying HBI stock.
Hanesbrands Inc. (HBI) generated $264.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Hanesbrands Inc. (HBI) generated $226.4M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hanesbrands Inc. (HBI) spent $37.9M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.