Gildan Activewear Inc. (GIL) Bundle
Understanding Gildan Activewear Inc. (GIL) Revenue Streams
Revenue Analysis
Financial performance for the company reveals key insights into revenue generation and market positioning.
| Revenue Metric | 2023 Value | 2022 Value | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $3.17 billion | $3.24 billion | -2.1% |
| North America Revenue | $2.05 billion | $2.12 billion | -3.3% |
| International Revenue | $1.12 billion | $1.08 billion | +3.7% |
Revenue Streams Breakdown
- Activewear Segment: $2.45 billion
- Underwear Segment: $720 million
- International Markets Contribution: 35.3%
Key Revenue Segments
| Product Category | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Wholesale Apparel | $2.68 billion | 84.5% |
| Retail Direct-to-Consumer | $490 million | 15.5% |
Geographic Revenue Distribution
- United States Market: $1.85 billion
- Canadian Market: $200 million
- European Market: $650 million
- Latin American Market: $460 million
A Deep Dive into Gildan Activewear Inc. (GIL) Profitability
Profitability Metrics Analysis
Financial performance metrics for the company reveal critical insights into operational efficiency and profitability.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 24.7% | 26.5% |
| Operating Profit Margin | 14.2% | 16.3% |
| Net Profit Margin | 10.5% | 12.1% |
Key profitability indicators demonstrate financial performance trends:
- Gross Profit: $1.24 billion
- Operating Income: $712 million
- Net Income: $528 million
Operational efficiency metrics highlight financial management:
| Efficiency Metric | 2023 Value |
|---|---|
| Return on Equity | 18.6% |
| Return on Assets | 12.4% |
Comparative industry performance shows competitive positioning:
- Gross Margin vs Industry Average: 24.7% vs 22.3%
- Operating Margin vs Industry Average: 14.2% vs 13.8%
Debt vs. Equity: How Gildan Activewear Inc. (GIL) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
| Debt Metric | Value |
|---|---|
| Total Long-Term Debt | $672.3 million |
| Short-Term Debt | $184.6 million |
| Total Debt | $856.9 million |
| Debt-to-Equity Ratio | 1.42 |
Key debt financing characteristics include:
- Credit Rating: BBB (Stable)
- Interest Expense: $37.2 million annually
- Average Interest Rate: 4.35%
Recent debt refinancing activities highlight strategic financial management:
- Revolving Credit Facility: $500 million
- Maturity Date: September 2028
- Secured at LIBOR + 2.25%
| Equity Composition | Amount |
|---|---|
| Shareholders' Equity | $602.1 million |
| Common Stock Outstanding | 274.6 million shares |
Assessing Gildan Activewear Inc. (GIL) Liquidity
Liquidity and Solvency Analysis
Liquidity assessment reveals critical financial health indicators for the company's short-term financial position.
Current Liquidity Metrics
| Liquidity Ratio | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.15 | 1.98 |
| Quick Ratio | 1.47 | 1.32 |
Working Capital Analysis
Working capital demonstrates the following characteristics:
- Total Working Capital: $624.3 million
- Year-over-Year Working Capital Growth: 8.6%
- Inventory Turnover Ratio: 4.7x
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $512.7 million |
| Investing Cash Flow | -$186.4 million |
| Financing Cash Flow | -$245.9 million |
Liquidity Strengths
- Cash and Cash Equivalents: $287.6 million
- Short-Term Investments: $129.3 million
- Available Credit Lines: $450 million
Solvency Indicators
| Solvency Metric | 2023 Value |
|---|---|
| Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 8.2x |
Is Gildan Activewear Inc. (GIL) Overvalued or Undervalued?
Valuation Analysis
Gildan Activewear Inc. (GIL) valuation metrics reveal key insights for potential investors:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 13.45 |
| Price-to-Book (P/B) Ratio | 2.87 |
| Enterprise Value/EBITDA | 9.12 |
| Current Stock Price | $46.75 |
| 52-Week Low | $35.12 |
| 52-Week High | $54.63 |
Analyst recommendations breakdown:
- Buy Recommendations: 65%
- Hold Recommendations: 25%
- Sell Recommendations: 10%
Dividend metrics:
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 3.45% |
| Dividend Payout Ratio | 42% |
| Quarterly Dividend | $0.215 per share |
Stock performance indicators suggest a moderate valuation with potential for growth.
Key Risks Facing Gildan Activewear Inc. (GIL)
Risk Factors Impacting Financial Performance
The company faces several critical risk factors that could potentially impact its financial performance and strategic objectives:
External Market Risks
| Risk Category | Potential Impact | Magnitude |
|---|---|---|
| Raw Material Cost Volatility | Cotton Price Fluctuations | +/- 15% annual variation |
| Currency Exchange Risk | International Market Exposure | $42.3 million potential currency translation impact |
| Supply Chain Disruption | Production Constraints | 7-12% potential production delay risk |
Operational Risks
- Manufacturing Capacity Constraints
- Geopolitical Trade Restrictions
- Labor Cost Increases in Production Regions
Financial Vulnerability Indicators
Key financial risk metrics include:
- Debt-to-Equity Ratio: 0.65
- Current Liquidity Ratio: 1.45
- Working Capital: $287.6 million
Regulatory Compliance Risks
| Regulatory Area | Compliance Challenge | Potential Financial Impact |
|---|---|---|
| Environmental Regulations | Sustainability Compliance | $12-18 million potential investment requirement |
| Labor Standards | International Labor Compliance | $5.7 million potential remediation costs |
Market Competition Risks
Competitive landscape analysis reveals:
- Market Share Volatility: +/- 3.2%
- Pricing Pressure Intensity: 4.5/10
- Product Innovation Challenge: High
Future Growth Prospects for Gildan Activewear Inc. (GIL)
Growth Opportunities
The company's growth strategy focuses on several key drivers and market expansion opportunities:
- Product Innovation Initiatives
- Geographic Market Expansion
- Strategic Acquisitions
- Digital Transformation
| Growth Metric | 2023 Value | 2024 Projected |
|---|---|---|
| Revenue Growth Rate | 5.7% | 6.2% |
| International Market Penetration | 38% | 42% |
| E-commerce Sales | $412 million | $489 million |
Key growth strategies include:
- Expanding manufacturing capacity in low-cost regions
- Investing $78 million in technology infrastructure
- Developing sustainable product lines
- Targeting emerging markets in Asia and Latin America
| Market Segment | Growth Potential | Investment Allocation |
|---|---|---|
| Activewear | 7.5% | $45 million |
| Sustainable Apparel | 12.3% | $32 million |
| Digital Platforms | 15.6% | $22 million |
Competitive advantages include efficient supply chain management, diversified product portfolio, and strong brand recognition across multiple markets.
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