Kontoor Brands Inc (KTB)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,620,280	2,579,340	2,604,520	2,434,200	2,097,840
Total current assets	US$ in thousands	1,064,280	1,043,880	982,269	910,658	901,680
Total current liabilities	US$ in thousands	393,905	392,637	440,429	455,812	413,635
Working capital turnover		3.91	3.96	4.81	5.35	4.30

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,620,280K ÷ ($1,064,280K – $393,905K)
= 3.91

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. In the case of Kontoor Brands Inc, the working capital turnover has shown some fluctuations over the years.

In December 31, 2020, the working capital turnover was 4.30, indicating that the company generated $4.30 of revenue for each dollar of working capital invested. This ratio improved to 5.35 in December 31, 2021, suggesting that the company became more efficient in utilizing its working capital to generate sales.

However, in the following years, there was a slight decline in the ratio. In December 31, 2022, the ratio dropped to 4.81, and further decreased to 3.96 in December 31, 2023. By December 31, 2024, the working capital turnover stood at 3.91, indicating a decreasing trend in efficiency in utilizing working capital to generate revenue.

Overall, while the working capital turnover ratio for Kontoor Brands Inc has fluctuated over the years, it is important for the company to closely monitor and manage its working capital effectively to sustain efficient operations and maximize profitability.