Kontoor Brands Inc (KTB)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,589,611	2,647,350	2,600,927	2,599,919	2,604,516	2,540,463	2,588,165	2,465,948	2,434,204	2,469,159	2,394,349	2,247,901	2,097,839	2,049,753	2,117,336	2,390,409
Property, plant and equipment	US$ in thousands	112,045	110,399	106,878	104,999	104,465	101,407	101,994	101,380	105,155	106,959	109,487	113,693	118,897	122,739	124,939	129,884	132,192	126,963	131,727
Fixed asset turnover		23.11	23.98	24.34	24.76	24.93	25.05	25.38	24.32	23.15	23.09	21.87	19.77	17.64	16.70	16.95	18.40

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,589,611K ÷ $112,045K
= 23.11

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating sales revenue from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is using its fixed assets effectively to generate sales.

Analyzing the trend of Kontoor Brands Inc's fixed asset turnover over the provided periods, we observe a generally increasing trend from the end of 2019 to the end of 2022, with a slight decline in the most recent quarters of 2023. The ratio peaked at 25.38 in June 2022 and has since decreased to 24.76 at the end of March 2023.

The high fixed asset turnover ratios during 2022 demonstrate that Kontoor Brands Inc was efficiently utilizing its fixed assets to generate sales revenue. However, the recent slight decline in the ratio in 2023 may suggest potential challenges in maintaining or further improving efficiency in utilizing fixed assets to drive sales.

It is important for investors and stakeholders to monitor this ratio closely to assess the company's operational efficiency and how well it is leveraging its fixed assets to generate revenue. Further analysis of the underlying factors contributing to the fluctuations in the fixed asset turnover ratio could provide insights into the company's operational performance and strategic decisions related to asset utilization.