Kontoor Brands Inc (KTB)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,610,986	2,571,058	2,544,950	2,544,398	2,579,338	2,637,077	2,590,654	2,589,646	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	1,064,280	1,066,230	1,022,010	1,060,240	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
Total current liabilities	US$ in thousands	393,905	427,288	373,077	392,638	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
Working capital turnover		3.89	4.02	3.92	3.81	3.96	4.10	4.17	4.06	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, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,610,986K ÷ ($1,064,280K – $393,905K)
= 3.89

The working capital turnover of Kontoor Brands Inc has shown a generally increasing trend from March 2020 to June 2021, indicating an improvement in the efficiency of the company's working capital management. The ratio increased from 2.68 in March 2020 to 5.27 in June 2021, reflecting that the company was able to generate 5.27 units of revenue for every dollar invested in working capital.

However, there was a slight decrease in the working capital turnover ratio in the subsequent quarters, with fluctuations between 4.06 and 5.35 from March 2021 to December 2021. From March 2022 to December 2024, the ratio further declined and fluctuated between 3.81 and 4.02. This downward trend may suggest a decrease in the efficiency of the company's working capital management.

Overall, it is crucial for Kontoor Brands Inc to closely monitor and manage its working capital turnover to ensure optimal utilization of resources and maintain efficiency in generating revenue. Further analysis and strategic adjustments may be necessary to address any potential challenges in working capital management and sustain the company's financial performance.