Kontoor Brands Inc (KTB)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,064,280	1,043,880	982,269	910,658	901,680
Total current liabilities	US$ in thousands	393,905	392,637	440,429	455,812	413,635
Current ratio		2.70	2.66	2.23	2.00	2.18

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,064,280K ÷ $393,905K
= 2.70

Based on the provided data, Kontoor Brands Inc's current ratio has shown steady fluctuations over the past five years. The current ratio represents the company's ability to cover its short-term obligations with its current assets.

As of December 31, 2020, the current ratio was 2.18, indicating that the company had $2.18 in current assets for every $1 in current liabilities. It decreased to 2.00 by December 31, 2021, which could suggest a slight decline in the company's short-term liquidity position.

However, Kontoor Brands Inc's current ratio improved in the following years, reaching 2.23 by December 31, 2022, 2.66 by December 31, 2023, and 2.70 by the end of December 31, 2024. These increasing values indicate a strengthening liquidity position over time, showing that the company has been able to enhance its ability to meet its short-term obligations with its current assets.

Overall, the current ratio trend for Kontoor Brands Inc shows a positive trajectory, with the company consistently maintaining a healthy liquidity position to cover its short-term liabilities.