Kontoor Brands Inc (KTB)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,279,170	2,300,670	2,289,480	2,194,930	1,997,800
Inventory	US$ in thousands	390,209	500,353	596,836	362,957	340,732
Inventory turnover		5.84	4.60	3.84	6.05	5.86

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,279,170K ÷ $390,209K
= 5.84

Based on the data provided, Kontoor Brands Inc's inventory turnover has shown some fluctuations over the years. The inventory turnover ratio indicates how effectively the company manages its inventory by measuring how many times the inventory is sold and replaced within a specific period.

In 2020, the inventory turnover ratio was 5.86, indicating that the company's inventory was turned over approximately 5.86 times during the year. This suggests that Kontoor Brands Inc was efficiently managing its inventory and had a relatively quick turnover.

In 2021, the inventory turnover ratio increased to 6.05, showing a further improvement in inventory management efficiency. A higher inventory turnover ratio typically indicates that the company is selling its products more quickly and efficiently.

However, in 2022, there was a notable drop in the inventory turnover ratio to 3.84, which could indicate potential issues with inventory management such as overstocking or slow-selling products. This lower ratio suggests that the company took longer to sell and replace its inventory during that period.

In 2023, the inventory turnover ratio increased to 4.60, but it was still below the levels seen in 2020 and 2021. This improvement may indicate some efforts to address inventory management issues, but the ratio remained lower than the peak levels.

By 2024, the inventory turnover ratio returned to a healthier level of 5.84, showing a rebound from the previous year. This suggests that Kontoor Brands Inc made some improvements in managing its inventory effectively and efficiently.

Overall, the trend in Kontoor Brands Inc's inventory turnover indicates some fluctuations, with periods of both strong performance and potential challenges in inventory management. It is important for the company to consistently monitor and improve its inventory turnover to ensure optimal operations and financial health.