Kontoor Brands Inc (KTB)

Cash ratio

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
Cash and cash equivalents US$ in thousands 334,066 269,427 224,296 215,059 215,050 77,828 82,418 52,677 59,179 58,053 145,296 193,630 185,322 215,442 175,628 229,542 248,138 285,251 256,276 479,366
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — 59,922
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
Cash ratio 0.85 0.63 0.60 0.55 0.55 0.20 0.21 0.13 0.13 0.11 0.31 0.39 0.41 0.43 0.42 0.53 0.60 0.62 0.77 1.47

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($334,066K + $—K) ÷ $393,905K
= 0.85

The cash ratio of Kontoor Brands Inc has shown a declining trend over the past few years, from 1.47 as of March 31, 2020, to 0.85 as of December 31, 2024. The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents.

A cash ratio of less than 1 indicates that the company may have difficulty covering its current liabilities with its cash on hand. In the case of Kontoor Brands Inc, the decreasing trend in the cash ratio suggests a potential liquidity concern, as the company's cash position may be decreasing relative to its current liabilities.

It is important for investors and stakeholders to monitor this trend closely, as a declining cash ratio could indicate potential liquidity issues that may impact the company's financial health and ability to meet its short-term obligations. Further analysis of the company's cash flow and cash management practices may provide additional insights into its financial condition.