Kontoor Brands Inc (KTB)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,300,670	2,289,480	2,194,930	1,997,800	2,397,470
Inventory	US$ in thousands	500,353	596,836	362,957	340,732	458,101
Inventory turnover		4.60	3.84	6.05	5.86	5.23

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,300,670K ÷ $500,353K
= 4.60

The inventory turnover ratio of Kontoor Brands Inc has fluctuated over the past five years. In 2023, the inventory turnover ratio increased to 4.60 from 3.84 in 2022, indicating that the company sold and replaced its inventory approximately 4.60 times during the year. This improvement suggests a more efficient management of inventory compared to the previous year.

However, the 2023 ratio is lower than the peak seen in 2021 at 6.05, which indicates the company turned over its inventory at a higher rate that year. The slight decrease from 2021 to 2023 may suggest a change in inventory management strategies or market conditions that affected the turnover rate.

Comparing the 2023 ratio to 2020 and 2019, the company's inventory turnover has shown a positive trend, indicating an overall improvement in inventory management efficiency over the past few years. Overall, the company's ability to efficiently manage and sell its inventory has shown positive variability over the analyzed period.