Kontoor Brands Inc (KTB)

Receivables 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
Receivables	US$ in thousands	217,673	236,816	186,024	—	225,858	234,569	185,157	276,037	289,800	269,874	215,297	221,031	231,397	221,971	153,302	213,080	228,459	302,582	254,049
Receivables turnover		11.90	11.18	13.98	—	11.53	10.83	13.98	8.93	8.40	9.15	11.12	10.17	9.07	9.23	13.81	11.22

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,589,611K ÷ $217,673K
= 11.90

The receivables turnover ratio for Kontoor Brands Inc has fluctuated over the past few quarters. The ratio stood at 11.90 as of December 31, 2023, indicating that the company collected its outstanding receivables approximately 11.90 times during the year. This was an improvement compared to the previous quarter where the ratio was 11.18.

Looking back at historical data, we can see variations in the receivables turnover ratio, with some quarters showing stronger collection efficiency than others. For example, in June 2020 and June 2019, the company achieved high turnover ratios of 13.81 and 13.98, respectively. These figures suggest that Kontoor Brands was able to efficiently collect its outstanding receivables during those periods.

On the other hand, there were quarters with lower turnover ratios such as March 2020 and March 2022 where the ratios were 9.23 and 8.93, respectively. These lower ratios may indicate a slower collection of receivables during those periods.

Overall, it is important for investors and analysts to monitor the receivables turnover ratio to assess how effectively Kontoor Brands is managing its accounts receivable and collecting payments from customers. A higher turnover ratio generally indicates better efficiency in collecting receivables, while a declining ratio may raise concerns about the company's ability to manage its outstanding balances effectively.