Kontoor Brands Inc (KTB)

Working capital 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
Total current assets	US$ in thousands	1,043,880	1,033,060	1,009,670	1,039,550	982,269	1,073,250	957,524	985,053	910,658	988,348	876,301	874,727	901,680	1,021,280	919,877	1,259,790	877,603	961,974	948,301
Total current liabilities	US$ in thousands	392,637	389,279	389,009	402,070	440,429	507,446	465,020	491,053	455,812	504,598	421,639	432,733	413,635	462,923	330,773	366,728	378,550	389,558	381,564
Working capital turnover		3.98	4.11	4.19	4.08	4.81	4.49	5.26	4.99	5.35	5.10	5.27	5.09	4.30	3.67	3.59	2.68

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,589,611K ÷ ($1,043,880K – $392,637K)
= 3.98

The working capital turnover ratio for Kontoor Brands Inc has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher ratio is generally preferred as it suggests that the company is effectively managing its working capital.

From the data provided, we can see that the working capital turnover ratio has generally been above 4 over the past few quarters, indicating that Kontoor Brands Inc has been efficient in utilizing its working capital to generate sales. The ratio peaked at 5.35 in the fourth quarter of 2021 and has since fluctuated between 4.08 and 4.99.

While the working capital turnover ratio has shown some variability, it has generally remained at a healthy level, indicating that the company is effectively managing its working capital. It is important to continue monitoring this ratio in future periods to ensure that working capital management remains efficient and supports the company's operational activities effectively.