Kontoor Brands Inc (KTB)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,043,880	982,269	910,658	901,680	877,603
Total current liabilities	US$ in thousands	392,637	440,429	455,812	413,635	378,550
Current ratio		2.66	2.23	2.00	2.18	2.32

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,043,880K ÷ $392,637K
= 2.66

The current ratio of Kontoor Brands Inc has shown fluctuating trends over the past five years. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates stronger short-term liquidity and financial health.

In 2023, the current ratio increased to 2.66 from 2.23 in 2022, reflecting an improvement in the company's ability to meet its short-term obligations. This suggests that Kontoor Brands Inc has more current assets relative to its current liabilities in 2023 compared to the previous year.

The current ratio was highest in 2019 at 2.32, then decreased in 2020 to 2.18, and further declined in 2021 to 2.00 before the recent increase in 2022 and 2023. This fluctuation may indicate changes in the company's liquidity management, working capital efficiency, or shifts in its current asset and liability composition.

Overall, the current ratio of Kontoor Brands Inc has exhibited some variability over the years, but the recent increase to 2.66 in 2023 suggests a favorable liquidity position compared to the previous years. It is important for investors and stakeholders to monitor the company's current ratio trends to assess its short-term financial strength and ability to manage its current obligations.