Kontoor Brands Inc (KTB)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,579,340	2,604,520	2,434,200	2,097,840	2,548,840
Receivables	US$ in thousands	217,673	225,858	289,800	231,397	228,459
Receivables turnover		11.85	11.53	8.40	9.07	11.16

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,579,340K ÷ $217,673K
= 11.85

The receivables turnover ratio measures how efficiently a company is able to collect on its accounts receivables during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.

Analyzing Kontoor Brands Inc's receivables turnover over the past five years, we observe fluctuations in the ratio. In 2023, the receivables turnover ratio increased to 11.85, from 11.53 in 2022, indicating an improvement in the company's ability to collect its receivables efficiently.

Comparing the 2023 ratio to the previous years, it is notably higher than the 8.40 recorded in 2021 and the 9.07 in 2020. This suggests that Kontoor Brands Inc has enhanced its collection process, which may result from implementing more efficient credit policies or strengthening customer relationships.

Although the 2023 ratio is an improvement over the two preceding years, it remains lower than the 11.16 recorded in 2019. This indicates that Kontoor Brands Inc was collecting its receivables at a faster rate in 2019 compared to the most recent year.

Overall, an increasing trend in the receivables turnover ratio is a positive sign of efficiency in collecting accounts receivable. However, in the case of Kontoor Brands Inc, it is essential to monitor whether the company can sustain or further improve this trend to manage its receivables effectively in the future.