Kontoor Brands Inc (KTB)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 215,050 | 59,179 | 185,322 | 248,138 | 106,808 |
| Short-term investments | US$ in thousands | — | — | — | — | 59,922 |
| Total current liabilities | US$ in thousands | 392,637 | 440,429 | 455,812 | 413,635 | 378,550 |
| Cash ratio | 0.55 | 0.13 | 0.41 | 0.60 | 0.44 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($215,050K
+ $—K)
÷ $392,637K
= 0.55
The cash ratio of Kontoor Brands Inc has fluctuated over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In 2023, the cash ratio increased significantly to 0.55 from 0.13 in 2022. This indicates that Kontoor Brands had a higher level of cash and cash equivalents relative to its short-term liabilities in 2023 compared to the previous year.
However, the cash ratio in 2023 is still lower than in 2020 when it was 0.60, suggesting that the company had a stronger ability to cover its short-term obligations with cash in 2020.
Overall, the cash ratio of Kontoor Brands has shown variability over the years, with fluctuations that may reflect changes in the company's cash position and short-term liabilities. Further analysis of the company's liquidity position and cash management practices could provide additional insights into its financial health.
Peer comparison
Dec 31, 2023