Kontoor Brands Inc (KTB)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	86.55	102.37	107.22	114.82	95.15	109.78	86.26	71.59	60.36	68.21	69.24	62.45	62.02	78.85	76.21	79.21
Days of sales outstanding (DSO)	days	30.68	32.65	26.11	—	31.65	33.70	26.11	40.86	43.45	39.89	32.82	35.89	40.26	39.53	26.43	32.54
Number of days of payables	days	31.17	30.86	33.40	28.50	32.88	49.58	45.12	44.15	35.62	40.79	34.12	34.76	30.44	37.86	19.14	24.30
Cash conversion cycle	days	86.06	104.16	99.93	86.31	93.92	93.90	67.25	68.30	68.19	67.31	67.94	63.58	71.84	80.52	83.50	87.45

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.55 + 30.68 – 31.17
= 86.06

The cash conversion cycle of Kontoor Brands Inc has fluctuated over the past few quarters. From December 2019 to December 2023, the company's cash conversion cycle has ranged from a low of 63.58 days to a high of 104.16 days.

In general, a shorter cash conversion cycle indicates that the company is able to convert its investments in inventory and receivables back into cash quicker, which is seen as a positive sign. On the other hand, a longer cash conversion cycle may suggest inefficiencies in managing working capital.

Kontoor Brands Inc's cash conversion cycle has shown some volatility, with periods of improvement followed by slight increases. The company should continue to monitor and manage its working capital effectively to ensure that its cash conversion cycle remains at optimal levels.