Kontoor Brands Inc (KTB)

Payables 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
Cost of revenue (ttm)	US$ in thousands	2,110,102	2,157,875	2,133,960	2,098,379	2,289,479	2,254,937	2,276,112	2,207,146	2,194,929	2,189,315	2,125,669	2,046,651	2,005,188	2,000,957	2,073,359	2,252,287
Payables	US$ in thousands	180,220	182,448	195,282	163,871	206,262	306,278	281,391	266,974	214,204	244,681	198,697	194,891	167,240	207,564	108,745	149,922	147,347	149,685	159,214
Payables turnover		11.71	11.83	10.93	12.81	11.10	7.36	8.09	8.27	10.25	8.95	10.70	10.50	11.99	9.64	19.07	15.02

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,110,102K ÷ $180,220K
= 11.71

The payables turnover ratio for Kontoor Brands Inc has shown fluctuations over the past several quarters. The ratio indicates the efficiency with which the company is able to manage its trade payables. A higher payables turnover ratio is generally preferred as it suggests that the company is paying its suppliers more frequently, which can be advantageous in terms of managing working capital and maintaining good relationships with suppliers.

From the data provided, we can observe that the payables turnover ratio has ranged from as low as 7.36 in September 2022 to as high as 19.07 in June 2020. The significant increase to 19.07 in June 2020 may indicate that the company was able to efficiently manage its payables during that period, possibly by negotiating better payment terms with suppliers or improving internal processes.

However, it is important to note that the ratio has not been consistently increasing or decreasing over time, showing fluctuations from quarter to quarter. For instance, the ratio increased to 12.81 in March 2023 but then decreased to 10.93 in June 2023 before increasing again to 11.83 in September 2023.

Overall, while the payables turnover ratio for Kontoor Brands Inc has shown variability, it is essential for stakeholders to monitor this ratio along with other financial metrics to assess the company's liquidity, efficiency, and relationships with suppliers.