Kontoor Brands Inc (KTB)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Inventory turnover		4.22	3.57	3.40	3.18	3.84	3.32	4.23	5.10	6.05	5.35	5.27	5.85	5.88	4.63	4.79	4.61
DOH	days	86.55	102.37	107.22	114.82	95.15	109.78	86.26	71.59	60.36	68.21	69.24	62.45	62.02	78.85	76.21	79.21

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.22
= 86.55

The days of inventory on hand (DOH) for Kontoor Brands Inc fluctuated over the past five years, ranging from a low of 60.36 days to a high of 114.82 days. Generally, a lower DOH indicates that the company is selling its inventory quickly and efficiently, while a higher DOH suggests slower inventory turnover.

Kontoor Brands Inc's DOH peaked in March 2023 at 114.82 days, indicating a potential issue with managing inventory levels or slowing sales. However, the company managed to reduce its DOH in the following quarters before it increased again in September 2023. The significant fluctuations in DOH suggest possible changes in demand, production levels, or inventory management practices within the company.

Overall, Kontoor Brands Inc should closely monitor its inventory levels and work towards optimizing its inventory turnover to enhance operational efficiency and financial performance. A thorough analysis of the underlying factors influencing inventory levels will be crucial for the company to maintain a healthy balance between stocking enough inventory to meet demand while minimizing carrying costs and potential obsolescence.