Kontoor Brands Inc (KTB)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total current assets	US$ in thousands	1,043,880	1,033,060	1,009,670	1,039,550	982,269	1,073,250	957,524	985,053	910,658	988,348	876,301	874,727	901,680	1,021,280	919,877	1,259,790	877,603	961,974	948,301
Total current liabilities	US$ in thousands	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	378,550	389,558	381,564
Current ratio		2.66	2.65	2.60	2.59	2.23	2.12	2.06	2.01	2.00	1.96	2.08	2.02	2.18	2.21	2.78	3.44	2.32	2.47	2.49

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 demonstrated a general upward trend over the past few quarters, indicating an improvement in the company's short-term liquidity position. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has consistently been above 1, signifying that Kontoor Brands Inc has more than enough current assets to meet its current liabilities.

As of December 31, 2023, the current ratio stands at 2.66, showing an increase compared to the previous quarter. This suggests that the company is in a strong position to cover its immediate financial obligations with its current assets. The ratios for the previous quarters also reflect a similar pattern of healthy liquidity levels.

Overall, the current ratio analysis indicates that Kontoor Brands Inc has been managing its short-term liquidity effectively, with ample current assets to support its current liabilities. However, it is essential for the company to maintain this trend to ensure continued financial stability and operational flexibility in the future.